55-34.12 - Liability to third person; exceptions. - Virginia Statutes

§ 55-34.12. Liability to third person; exceptions.

A claim based on a contract entered into by a custodial trustee acting in afiduciary capacity, an obligation arising from the ownership or control ofcustodial trust property, or a tort committed in the course of administeringthe custodial trust, may be asserted by a third person against the custodialtrust property by proceeding against the custodial trustee in a fiduciarycapacity, whether or not the custodial trustee or the beneficiary ispersonally liable.

A custodial trustee is not personally liable to a third person (i) on acontract properly entered into in a fiduciary capacity, unless the custodialtrustee fails to reveal that capacity or to identify the custodial trust inthe contract, or (ii) for an obligation arising from control of custodialtrust property or for a tort committed in the course of the administration ofthe custodial trust unless the custodial trustee is personally at fault. Abeneficiary is not personally liable to a third person for an obligationarising from beneficial ownership of custodial trust property or for a tortcommitted in the course of administration of the custodial trust unless thebeneficiary is personally in possession of the custodial trust propertygiving rise to the liability or is personally at fault. This section doesnot preclude actions or proceedings to establish liability of the custodialtrustee or beneficiary to the extent the person sued is protected as theinsured by liability insurance.

(1990, c. 264.)