Virginia Living Trust Form (Revocable)

1. Competent: The grantor must have the capacity to establish a trust.
2. Intent: The grantor must indicate an intention to create a trust.
3. Definite Beneficiary: Unless it is a charitable trust or a trust for the care of an animal, the trust must have a definite beneficiary.
4. Trustee’s Duties: The trustee must have duties to perform.
5. Sole Trustee Cannot be the Sole Beneficiary: The same person cannot be both the sole trustee and the sole beneficiary of the trust.^[1]

Amending/Revoking – Unless the terms of the trust expressly state that it is irrevocable, the grantor may amend or revoke the trust.^[2]

Bond Requirement – A bond to secure the performance of the trustee’s duties shall only be necessary if this is a requirement under the terms of the trust or if the court finds that such a bond is necessary to protect the beneficiaries’ interests.^[3]

Certification of Trust – Instead of furnishing a copy of the trust instrument to a person other than the beneficiary, the trustee may provide a certification of trust containing specific information regarding the trust.^[4]

Co-Trustees – If co-trustees are unable to reach a unanimous decision, they may act by majority decision.^[5]

Contesting a Trust – An action to contest the validity of a trust must be commenced within six months of receiving notice from the trustee of the trust’s existence or within two years of the grantor’s death, whichever is earlier.^[6]

Costs Related to the Trust – In administering a trust, the trustee may only incur costs that are reasonable in relation to the trust’s purposes and property.^[7]

Jurisdiction – A trust created in another jurisdiction is valid in Virginia if its creation was in compliance with the laws of the jurisdiction in which the trust instrument was executed.^[8]

Oral Trusts – An oral trust may only be established by clear and convincing evidence.^[9]

Pet Trusts – A trust may be created to provide for the care of an animal or animals alive during the grantor’s lifetime. The trust terminates upon the death of the last surviving animal cared for by the trust.^[10]

Signing Requirements – A signature is not required by Virginia statute for a living trust to be valid.

Spendthrift Provision – A spendthrift provision is valid if it restrains both the voluntary and involuntary transfer of a beneficiary’s interest.^[11]

Trustee’s Compensation – If the terms of the trust do not specify the trustee’s compensation, the trustee is otherwise entitled to reasonable compensation.^[12]

Trustee’s Duties – A trustee must administer the trust and invest trust assets in good faith, in accordance with its terms and the interests of the beneficiaries, and in compliance with the provisions of the Uniform Prudent Investor Act.^[13]

Trustee’s Powers – In addition to the powers conferred by the trust instrument, the trustee has the power to collect, acquire, sell, exchange, partition, or otherwise change the character of trust property.^[14]