{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/64.2-738.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/64.2-738.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/64.2-738.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/64.2-738.html"}],"law_id":376406,"edition_id":2,"section_id":376406,"structure_id":53528,"section_number":"64.2-738","catch_line":"Prohibitions as to trust that is deemed a split-interest trust","history":"2005, c. 935, \u00a7 55-544.20; 2012, c. 614.","full_text":"Every trust that is a split-interest trust, as described in \u00a7 4947(a)(2) of the Internal Revenue Code, unless its governing instrument expressly includes specific provisions to the contrary, shall not engage in any act of self-dealing, as defined in \u00a7 4941(d) of the Internal Revenue Code, retain any excess business holdings, as defined in \u00a7 4943(c) of the Internal Revenue Code, that would give rise to liability for the tax imposed by \u00a7 4943(a) of the Internal Revenue Code, make any investments in such manner as to give rise to liability for the tax imposed by \u00a7 4944 of the Internal Revenue Code, or make any taxable expenditures, as defined in \u00a7 4945(d) of the Internal Revenue Code. This section shall not apply with respect to:\n\n1\n\nAny amounts payable under the terms of such trust to income beneficiaries, unless a deduction was allowed under &#xA7; 170(f)(2)(B), 2055(e)(2)(B), or 2522(c)(2)(B) of the Internal Revenue Code;\n\n2\n\nAny amounts in trust other than amounts for which a deduction was allowed under &#xA7; 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 of the Internal Revenue Code, if such other amounts are segregated from amounts for which no deduction was allowable; or\n\n3\n\nAny amounts transferred in trust before May 27, 1969.\n\n","order_by":null,"text":{"0":{"id":1405334,"text":"Every trust that is a split-interest trust, as described in \u00a7 4947(a)(2) of the Internal Revenue Code, unless its governing instrument expressly includes specific provisions to the contrary, shall not engage in any act of self-dealing, as defined in \u00a7 4941(d) of the Internal Revenue Code, retain any excess business holdings, as defined in \u00a7 4943(c) of the Internal Revenue Code, that would give rise to liability for the tax imposed by \u00a7 4943(a) of the Internal Revenue Code, make any investments in such manner as to give rise to liability for the tax imposed by \u00a7 4944 of the Internal Revenue Code, or make any taxable expenditures, as defined in \u00a7 4945(d) of the Internal Revenue Code. This section shall not apply with respect to:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":1405335,"text":"Any amounts payable under the terms of such trust to income beneficiaries, unless a deduction was allowed under &#xA7; 170(f)(2)(B), 2055(e)(2)(B), or 2522(c)(2)(B) of the Internal Revenue Code;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":1405336,"text":"Any amounts in trust other than amounts for which a deduction was allowed under &#xA7; 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 of the Internal Revenue Code, if such other amounts are segregated from amounts for which no deduction was allowable; or","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":1405337,"text":"Any amounts transferred in trust before May 27, 1969.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"ancestry":[{"id":53528,"edition_id":2,"name":"Creation, Validity, Modification, and Termination of Trust","identifier":"4","label":"article","depth":4,"order_by":4,"parent_id":53524,"metadata":{"child_laws":23,"child_structures":0},"date_created":"2026-08-02 03:17:45","date_modified":"2026-08-02 12:37:11","permalink":{"id":1501265,"object_type":"structure","relational_id":53528,"identifier":"4","token":"64.2\/III\/7\/4","url":"\/64.2\/III\/7\/4\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53524,"edition_id":2,"name":"Uniform Trust Code","identifier":"7","label":"chapter","depth":3,"order_by":1,"parent_id":53428,"metadata":{"child_laws":150,"child_structures":13},"date_created":"2026-08-02 03:17:42","date_modified":"2026-08-02 12:37:10","permalink":{"id":1501109,"object_type":"structure","relational_id":53524,"identifier":"7","token":"64.2\/III\/7","url":"\/64.2\/III\/7\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53428,"edition_id":2,"name":"Trusts","identifier":"III","label":"subtitle","depth":2,"order_by":3,"parent_id":53424,"metadata":{"child_laws":232,"child_structures":36},"date_created":"2026-08-02 03:16:27","date_modified":"2026-08-02 12:37:10","permalink":{"id":1500813,"object_type":"structure","relational_id":53428,"identifier":"III","token":"64.2\/III","url":"\/64.2\/III\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53424,"edition_id":2,"name":"Wills, Trusts, and Fiduciaries","identifier":"64.2","label":"title","depth":1,"order_by":136,"parent_id":null,"metadata":{"child_laws":776,"child_structures":114},"date_created":"2026-08-02 03:16:27","date_modified":"2026-08-02 12:37:05","permalink":{"id":1499783,"object_type":"structure","relational_id":53424,"identifier":"64.2","token":"64.2","url":"\/64.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":376387,"structure_id":53528,"section_number":"64.2-719","catch_line":"Methods of creating trust","url":"\/64.2-719\/","token":"64.2\/III\/7\/4\/64.2-719","metadata":false},{"id":376388,"structure_id":53528,"section_number":"64.2-720","catch_line":"Requirements for creation","url":"\/64.2-720\/","token":"64.2\/III\/7\/4\/64.2-720","metadata":false},{"id":376389,"structure_id":53528,"section_number":"64.2-721","catch_line":"Trusts created in other jurisdictions","url":"\/64.2-721\/","token":"64.2\/III\/7\/4\/64.2-721","metadata":false},{"id":376390,"structure_id":53528,"section_number":"64.2-722","catch_line":"Trust purposes","url":"\/64.2-722\/","token":"64.2\/III\/7\/4\/64.2-722","metadata":false},{"id":376391,"structure_id":53528,"section_number":"64.2-723","catch_line":"Charitable purposes; enforcement","url":"\/64.2-723\/","token":"64.2\/III\/7\/4\/64.2-723","metadata":false},{"id":376392,"structure_id":53528,"section_number":"64.2-724","catch_line":"Creation of trust induced by fraud, duress, or undue influence","url":"\/64.2-724\/","token":"64.2\/III\/7\/4\/64.2-724","metadata":false},{"id":376393,"structure_id":53528,"section_number":"64.2-725","catch_line":"Evidence of oral trust","url":"\/64.2-725\/","token":"64.2\/III\/7\/4\/64.2-725","metadata":false},{"id":376394,"structure_id":53528,"section_number":"64.2-726","catch_line":"Trust for care of animal","url":"\/64.2-726\/","token":"64.2\/III\/7\/4\/64.2-726","metadata":false},{"id":376395,"structure_id":53528,"section_number":"64.2-727","catch_line":"Noncharitable trust without ascertainable beneficiary","url":"\/64.2-727\/","token":"64.2\/III\/7\/4\/64.2-727","metadata":false},{"id":376396,"structure_id":53528,"section_number":"64.2-728","catch_line":"Modification or termination of trust; proceedings for approval or disapproval","url":"\/64.2-728\/","token":"64.2\/III\/7\/4\/64.2-728","metadata":false},{"id":376397,"structure_id":53528,"section_number":"64.2-729","catch_line":"Modification or termination of noncharitable irrevocable trust by consent","url":"\/64.2-729\/","token":"64.2\/III\/7\/4\/64.2-729","metadata":false},{"id":376398,"structure_id":53528,"section_number":"64.2-730","catch_line":"Modification or termination because of unanticipated circumstances or inability to administer trust effectively","url":"\/64.2-730\/","token":"64.2\/III\/7\/4\/64.2-730","metadata":false},{"id":376399,"structure_id":53528,"section_number":"64.2-731","catch_line":"Cy pres","url":"\/64.2-731\/","token":"64.2\/III\/7\/4\/64.2-731","metadata":false},{"id":376400,"structure_id":53528,"section_number":"64.2-732","catch_line":"Modification or termination of uneconomic trust","url":"\/64.2-732\/","token":"64.2\/III\/7\/4\/64.2-732","metadata":false},{"id":376401,"structure_id":53528,"section_number":"64.2-733","catch_line":"Reformation to correct mistakes","url":"\/64.2-733\/","token":"64.2\/III\/7\/4\/64.2-733","metadata":false},{"id":376402,"structure_id":53528,"section_number":"64.2-734","catch_line":"Modification to achieve settlor's tax objectives","url":"\/64.2-734\/","token":"64.2\/III\/7\/4\/64.2-734","metadata":false},{"id":376403,"structure_id":53528,"section_number":"64.2-735","catch_line":"Combination and division of trusts","url":"\/64.2-735\/","token":"64.2\/III\/7\/4\/64.2-735","metadata":false},{"id":376404,"structure_id":53528,"section_number":"64.2-736","catch_line":"Amendment of trust where gift, grant, or will establishes private foundation or constitutes a charitable trust or a split-interest trust","url":"\/64.2-736\/","token":"64.2\/III\/7\/4\/64.2-736","metadata":false},{"id":376405,"structure_id":53528,"section_number":"64.2-737","catch_line":"Distribution of income of trust that is a private foundation or a charitable trust; prohibitions as to such private foundation","url":"\/64.2-737\/","token":"64.2\/III\/7\/4\/64.2-737","metadata":false},{"id":376406,"structure_id":53528,"section_number":"64.2-738","catch_line":"Prohibitions as to trust that is deemed a split-interest trust","url":"\/64.2-738\/","token":"64.2\/III\/7\/4\/64.2-738","metadata":false},{"id":376407,"structure_id":53528,"section_number":"64.2-739","catch_line":"Application of \u00a7\u00a7 64.2-737 and 64.2-738","url":"\/64.2-739\/","token":"64.2\/III\/7\/4\/64.2-739","metadata":false},{"id":376408,"structure_id":53528,"section_number":"64.2-740","catch_line":"Interpretation of references to Internal Revenue Code in \u00a7\u00a7 64.2-736 through 64.2-739","url":"\/64.2-740\/","token":"64.2\/III\/7\/4\/64.2-740","metadata":false},{"id":376409,"structure_id":53528,"section_number":"64.2-741","catch_line":"Powers of courts not impaired by \u00a7\u00a7 64.2-736 through 64.2-740","url":"\/64.2-741\/","token":"64.2\/III\/7\/4\/64.2-741","metadata":false}],"previous_section":{"id":376405,"structure_id":53528,"section_number":"64.2-737","catch_line":"Distribution of income of trust that is a private foundation or a charitable trust; prohibitions as to such private foundation","url":"\/64.2-737\/","token":"64.2\/III\/7\/4\/64.2-737","metadata":false},"next_section":{"id":376407,"structure_id":53528,"section_number":"64.2-739","catch_line":"Application of \u00a7\u00a7 64.2-737 and 64.2-738","url":"\/64.2-739\/","token":"64.2\/III\/7\/4\/64.2-739","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-738\/","history_text":"<p>This law was first created in 2005. The record of its establishment is cataloged in chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?051+ful+CHAP0935\">935<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2012, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?121+ful+CHAP0614\">614<\/a>.<\/p>","references":[{"id":376407,"section_number":"64.2-739","catch_line":"Application of \u00a7\u00a7 64.2-737 and 64.2-738","order_by":null,"url":"\/64.2-739\/"}],"refers_to":false,"permalink":{"id":1501343,"object_type":"law","relational_id":376406,"identifier":"64.2-738","token":"64.2\/III\/7\/4\/64.2-738","url":"\/64.2-738\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/64.2-738\/","token":"64.2\/III\/7\/4\/64.2-738","dublin_core":{"Title":"Prohibitions as to trust that is deemed a split-interest trust","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-738","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>Every trust that is a split-interest trust, as described in \u00a7&nbsp;4947(a)(2) of the Internal Revenue Code, unless its governing instrument expressly includes specific provisions to the contrary, shall not engage in any act of self-dealing, as defined in \u00a7&nbsp;4941(d) of the Internal Revenue Code, retain any excess business holdings, as defined in \u00a7&nbsp;4943(c) of the Internal Revenue Code, that would give rise to liability for the tax imposed by \u00a7&nbsp;4943(a) of the Internal Revenue Code, make any investments in such manner as to give rise to liability for the tax imposed by \u00a7&nbsp;4944 of the Internal Revenue Code, or make any taxable expenditures, as defined in \u00a7&nbsp;4945(d) of the Internal Revenue Code. This section shall not apply with respect to:<\/p><\/section>\n\t\t\t\t\t\t<section id=\"1\"><p><span class=\"prefix-number\">1.<\/span> Any amounts payable under the terms of such trust to income beneficiaries, unless a deduction was allowed under &#xA7; 170(f)(2)(B), 2055(e)(2)(B), or 2522(c)(2)(B) of the Internal Revenue Code; <a id=\"paragraph-1405335\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/64.2-738\/#1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"2\"><p><span class=\"prefix-number\">2.<\/span> Any amounts in trust other than amounts for which a deduction was allowed under &#xA7; 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 of the Internal Revenue Code, if such other amounts are segregated from amounts for which no deduction was allowable; or <a id=\"paragraph-1405336\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/64.2-738\/#2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"3\"><p><span class=\"prefix-number\">3.<\/span> Any amounts transferred in trust before May 27, 1969. <a id=\"paragraph-1405337\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/64.2-738\/#3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nPROHIBITIONS AS TO TRUST THAT IS DEEMED A SPLIT-INTEREST TRUST (\u00a7 64.2-738)\n\nEvery trust that is a split-interest trust, as described in \u00a7 4947(a)(2) of the\nInternal Revenue Code, unless its governing instrument expressly includes\nspecific provisions to the contrary, shall not engage in any act of\nself-dealing, as defined in \u00a7 4941(d) of the Internal Revenue Code, retain any\nexcess business holdings, as defined in \u00a7 4943(c) of the Internal Revenue Code,\nthat would give rise to liability for the tax imposed by \u00a7 4943(a) of the\nInternal Revenue Code, make any investments in such manner as to give rise to\nliability for the tax imposed by \u00a7 4944 of the Internal Revenue Code, or make\nany taxable expenditures, as defined in \u00a7 4945(d) of the Internal Revenue Code.\nThis section shall not apply with respect to:\n\n1. Any amounts payable under the terms of such trust to income beneficiaries,\nunless a deduction was allowed under &#xA7; 170(f)(2)(B), 2055(e)(2)(B), or\n2522(c)(2)(B) of the Internal Revenue Code;\n\n2. Any amounts in trust other than amounts for which a deduction was allowed\nunder &#xA7; 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 of the\nInternal Revenue Code, if such other amounts are segregated from amounts for\nwhich no deduction was allowable; or\n\n3. Any amounts transferred in trust before May 27, 1969.\n\nHISTORY: 2005, c. 935, \u00a7 55-544.20; 2012, c. 614.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}