A. As used in this section, 'liquidating asset' means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time. 'Liquidating asset' includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance.\nB. This section does not apply to a receipt subject to § 64.2-1048, 64.2-1056, 64.2-1058, 64.2-1059, 64.2-1061, 64.2-1062, 64.2-1063, or 64.2-1066.\nC. A fiduciary shall allocate:\n1. To income:\na. A receipt produced by a liquidating asset, to the extent the receipt does not exceed four percent of the value of the asset; or\nb. If the fiduciary cannot determine the value of the asset, 10 percent of the receipt; and\n2. To principal, the balance of the receipt.\n2022, c. 354.
Virginia Legal Code