31-48 - Care of custodial property; duties of custodian. - Virginia Statutes

§ 31-48. Care of custodial property; duties of custodian.

A. A custodian shall take control of custodial property, register or recordtitle to custodial property, if appropriate, and collect, hold, manage,invest, and reinvest custodial property.

B. In dealing with custodial property, a custodian shall observe the standardof care set forth in the Uniform Prudent Investor Act (§ 26-45.3 et seq.),except to the extent provided by § 26-40.01. However, a custodian, in thecustodian's discretion and without liability to the minor or the minor'sestate, may retain any custodial property received from a transferor.

C. A custodian may invest in or pay premiums on life insurance or endowmentpolicies on (i) the life of the minor only if the minor or the minor's estateis the sole beneficiary, or (ii) the life of another person in whom the minorhas an insurable interest only to the extent that the minor, the minor'sestate, or the custodian in the capacity of custodian, is the beneficiaryduring the period of custodianship.

D. A custodian at all times shall keep custodial property separate anddistinct from all other property in a manner sufficient to identify itclearly as custodial property of the minor. Custodial property consisting ofan undivided interest is so identified if the minor's interest is held as atenant in common and is fixed. Custodial property subject to recordation isso identified if it is recorded, and custodial property subject toregistration is so identified if it is either registered, or held in anaccount designated, in the name of the custodian, followed in substance bythe words: "as a custodian for . . . . . . . . . . . . . . . . . . . . (nameof minor) under the Virginia Uniform Transfers to Minors Act."

E. A custodian shall keep records of all transactions with respect tocustodial property, including the information necessary for the preparationof the minor's tax returns, and shall make them available for inspection atreasonable intervals by a parent or legal representative of the minor or bythe minor if the minor has attained the age of fourteen years.

(1988, c. 516; 2007, c. 517.)