Virginia adopted the Uniform Trust Code in 2005, making it one of the earlier UTC adopters on the East Coast. The state follows the UTC framework closely, with standard notice, accounting, and duty provisions. Virginia is a common-law property state (not community property), and it has positioned itself as a reasonably trust-friendly jurisdiction with no state-level estate tax and the ability to create trusts of substantial duration.
This guide applies to both revocable and irrevocable trusts in Virginia.
Where Virginia trust law lives
The Virginia Uniform Trust Code is in Virginia Code sections 64.2-700 et seq. Virginia also has a separate Uniform Prudent Investor Act at sections 64.2-780 et seq., and directed trust provisions in the trust code.
Accounting and notice requirements
Virginia follows the standard UTC framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship and when the trust becomes irrevocable. Annual accounting to qualified beneficiaries is required.
Virginia allows the trust creator to modify the default reporting requirements to some extent through the trust document, consistent with UTC section 105. However, certain core duties (like the duty to notify beneficiaries of an irrevocable trust that the trust exists) are mandatory and cannot be overridden.
Trustee duties
Virginia follows the standard UTC duties: good faith administration, loyalty, impartiality, and prudent investing. The Uniform Prudent Investor Act requires diversification, portfolio-level evaluation, and consideration of the trust's purposes and beneficiaries' needs.
Trustee compensation
Virginia uses the "reasonable under the circumstances" standard. No statutory fee schedule. Professional trustees typically charge 0.5% to 1.5% of trust assets annually. The court can review and adjust compensation.
What makes Virginia different
No state estate tax. Virginia does not impose a state-level estate tax, which makes it more favorable than neighboring Maryland and the District of Columbia, both of which have their own estate taxes with lower exemptions than the federal level.
Proximity to D.C. creates planning opportunities. Many Virginia residents work in D.C. or Maryland. Understanding which state's trust law governs your trust matters for compliance, and establishing a trust under Virginia law can provide advantages over D.C. or Maryland trust law in certain situations.
Clean UTC adoption. Virginia's UTC implementation is relatively straightforward without many of the unusual modifications found in states like Pennsylvania (30-month limitation shield) or Michigan (non-waivable accounting). This means general UTC guidance is reliable for Virginia trusts.
Directed trust provisions. Virginia allows the use of trust protectors and investment advisors within the trust structure, providing flexibility in how trust management responsibilities are divided.
TrustHelm tip: TrustHelm tracks your Virginia trust obligations and generates your annual accounting in the format required. The platform flags your 60-day notice deadline and tracks all trustee duties based on Virginia's UTC rules.
The most common Virginia trust mistakes
Not funding the trust. The universal mistake. Assets not titled in the trust's name go through probate.
Confusing Virginia, D.C., and Maryland rules. Families in the greater D.C. area often have property, accounts, or connections in multiple jurisdictions. Each has different trust rules, especially around estate taxes. Make sure you know which state's law governs your trust.
Missing the 60-day notice deadline. Standard UTC requirement that's easy to miss after a death or trustee transition.
Not reviewing the trust after moving to Virginia. If you moved from a non-UTC state (like New York) or a state with different modifications (like Pennsylvania), your trust may need updates to align with Virginia's rules.
When to talk to an attorney
You should consult a Virginia trust attorney if you have property in multiple jurisdictions (Virginia, D.C., Maryland), you're moving a trust to Virginia from another state, you want to establish a directed trust with a trust protector, or you're a successor trustee taking over after a death.
For finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney directory.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.