Small Estates. Raises from $5,000 to $10,000 the threshold amount of an estate for which (i) a fiduciary may qualify without giving surety on his bond, (ii) filing of an inventory is waived, and (iii) the filing of a probate tax return and payment of the tax is waived. (HB 344)
Effect of Involuntary Termination of Parental Rights. Provides that when parental rights are involuntarily terminated, the child may still inherit from the parent. However, the parent may not inherit from the child. Ancestors of the parent and descendants of ancestors, other than the parent whose rights were involuntarily terminated, may inherit from the child. (HB 490)
Removal of Trustee from Virginia. Clarifies that if a trustee moves his residence from Virginia he is not disqualified unless continued residence is required by law. Beneficiaries of a trust may petition the court to have a resident trustee appointed for good cause where a corporate trustee moves the management function over the trust to another jurisdiction. (HB 487; SB 321)
Trustee's Duties under Life Insurance Trust. Modifies a trustee's standard of judgment and care by eliminating any duty of a trustee under an irrevocable life insurance trust to (i) determine whether the insurance policy is and remains a proper investment, (ii) dispose of such policy in order to diversify the investments of the trust, or (iii) exercise policy options under the contract not essential to the continuation of the policy. (HB 489)
Designation of Standby Guardian. Provides a mechanism for a parent who is seriously ill to designate (either by prior court approval or by more informal written designation) a standby guardian. The standby guardian is authorized to act for the parent with respect to a minor child upon the occurrence of a "triggering event" which must be specified in the court order or in the written designation. (HB 511)
Spendthrift Trusts. Increases the maximum value of a trust estate which may be made exempt from the liabilities of the beneficiaries to $1,000,000. Under current law, the maximum amount is $600,000. (HB 644)
Insurance Policy Value. Provides that the value of an insurance policy which is included in the augmented estate is determined as of the date of the irrevocable transfer of the policy and is the cost of a comparable policy on that date or its "interpolated policy reserve." (HB 761)
Power of Attorney. Provides that an affidavit executed by the person holding a power of attorney stating that the power has not been revoked or terminated is conclusive proof of non-revocation or non-termination in an action against a third party, unless the third party has actual knowledge to the contrary. Under current law, a third party may not rely on such an affidavit if fraud is involved, but the statute is unclear as to whose fraud and when such fraud would have to be discovered. (HB 532)
R. Neal Keesee, Jr.
Mr. Keesee is a Principal in the Firm.
E-mail: keesee@woodsrogers.com