Virginia Code 64.2-1911: Care of custodial property; duties of custodian
A. A custodian shall take control of custodial property, register or record title to custodial property, if appropriate, and collect, hold, manage, invest, and reinvest custodial property.
Terms Used In Virginia Code 64.2-1911
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Custodial property: means (i) any interest in property transferred to a custodian under this chapter and (ii) the income from and proceeds of that interest in property. See Virginia Code 64.2-1900
- Custodian: means a person so designated under § Virginia Code 64.2-1900
- Legal representative: means an individual's personal representative or conservator. See Virginia Code 64.2-1900
- Minor: means an individual who has not attained the age of 18 years. See Virginia Code 64.2-1900
- Person: means an individual, corporation, organization, or other legal entity. See Virginia Code 64.2-1900
- Transferor: means a person who makes a transfer under this chapter. See Virginia Code 64.2-1900
B. In dealing with custodial property, a custodian shall observe the standard of care set forth in the Uniform Prudent Investor Act (§ 64.2-780 et seq.), except to the extent provided by § 64.2-1502. However, a custodian, in the custodian’s discretion and without liability to the minor or the minor’s estate, may retain any custodial property received from a transferor.
C. A custodian may invest in or pay premiums on life insurance or endowment policies on (i) the life of the minor only if the minor or the minor’s estate is the sole beneficiary or (ii) the life of another person in whom the minor has an insurable interest only to the extent that the minor, the minor’s estate, or the custodian in the capacity of custodian is the beneficiary during the period of custodianship.
D. A custodian at all times shall keep custodial property separate and
distinct from all other property in a manner sufficient to identify it clearly
as custodial property of the minor. Custodial property consisting of an
undivided interest is so identified if the minor’s interest is held as a
tenant in common and is fixed. Custodial property subject to recordation is so
identified if it is recorded, and custodial property subject to registration
is so identified if it is either registered, or held in an account designated,
in the name of the custodian, followed in substance by the words: “as a
custodian for………(name of minor) under the Virginia Uniform
Transfers to Minors Act.”
E. A custodian shall keep records of all transactions with respect to custodial property, including the information necessary for the preparation of the minor’s tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor has attained the age of 14 years.