Any personal representative of a decedent, fiduciary of a person under a disability, or other fiduciary may submit to arbitration any suit or matter of controversy touching the estate or property of such decedent, or person under a disability or in respect to which he is trustee. And any submission so made in good faith, and the award made thereupon, shall be binding and entered as the judgment of a court, if so required by the agreement, in the same manner as other submissions and awards. No such fiduciary shall be responsible for any loss sustained by an award adverse to the interests of the person under a disability or beneficiary under any such trust, unless it was caused by his fault or neglect.
§ 8.01-581.Fiduciary may submit to arbitration.
Chapter 21. Arbitration and Award · Article 1. General Provisions · Last amended 1977 · Last verified July 16, 2026
In one sentenceA personal representative, guardian, or other fiduciary may submit a dispute touching an estate, a disabled person, or trust property to arbitration; the resulting award binds and can be entered as a judgment, and the fiduciary is not liable for a loss from an adverse award unless it came from the fiduciary’s own fault or neglect.
Full Text of § 8.01-581
Plain-English Summary
This section answers a question that might otherwise stall an estate or trust dispute: does a fiduciary have the authority to agree to arbitration on behalf of someone else’s interests? The answer is yes. A personal representative of a decedent, a fiduciary for a person under a disability, or any other fiduciary can submit a controversy touching the estate or property they manage to arbitration.
Made in good faith, that submission — and the award that follows — carries the same force as any other arbitration under this chapter. If the underlying agreement calls for it, the award can be entered as a court judgment, binding on the estate or trust just as it would bind an ordinary party.
The section also protects the fiduciary personally. Arbitration outcomes are unpredictable, and a fiduciary should not have to fear personal liability every time an award comes out worse than expected. So long as the fiduciary acted in good faith, they are not responsible for a loss caused by an award adverse to the disabled person’s or beneficiary’s interests — unless that loss traces back to the fiduciary’s own fault or neglect.
Frequently Asked Questions
Can an executor or administrator agree to arbitrate a dispute over an estate?
Yes. Any personal representative of a decedent may submit to arbitration a suit or matter of controversy touching the estate or property of the decedent.
Is a fiduciary personally liable if an arbitration award turns out badly for the estate?
Not automatically. The fiduciary is not responsible for any loss sustained by an adverse award unless the loss was caused by the fiduciary’s own fault or neglect.
Can a trustee submit a trust dispute to arbitration?
Yes, the section covers “other fiduciary” submissions in respect to matters where the person is trustee, in addition to personal representatives and fiduciaries for persons under a disability.
Does an arbitration award against an estate need to be entered as a court judgment?
It is entered as the judgment of a court if the arbitration agreement requires that, in the same manner as other submissions and awards under this chapter.
What condition must be met for the fiduciary’s submission to be valid?
The submission must be made in good faith for the resulting award to bind the estate, disabled person, or trust in the manner this section describes.
Amendment History
Code 1950, § 8-507; 1977, c. 617.
Source & verification. Section text and amendment history are
reproduced verbatim from the Code of Virginia, published by the
Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026.
· Official source
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