55-34.13 - Declination, resignation, incapacity, death, or removal of custodial trustee; designation of successor. - Virginia Statutes

§ 55-34.13. Declination, resignation, incapacity, death, or removal ofcustodial trustee; designation of successor.

Before accepting the custodial trust property, a person designated ascustodial trustee may decline to serve by notifying the person who made thedesignation, the transferor, or the transferor's legal representative. If anevent giving rise to a transfer has not occurred, the substitute custodialtrustee designated under § 55-34.3 becomes the custodial trustee, or, if asubstitute custodial trustee has not been designated, the person who made thedesignation may designate a substitute custodial trustee pursuant to §55-34.3. In other cases, the transferor or the transferor's legalrepresentative may designate a substitute custodial trustee.

A custodial trustee who has accepted the custodial trust property may resignby (i) delivering written notice to a successor custodial trustee, if any,the beneficiary and, if the beneficiary is incapacitated, to thebeneficiary's conservator, if any, and (ii) transferring or registering, orrecording an appropriate instrument relating to, the custodial trustproperty, in the name of, and delivering the records to, the successorcustodial trustee.

If a custodial trustee or successor custodial trustee is ineligible, resigns,dies, or becomes incapacitated, the successor designated in accordance withthe trust instrument or in accordance with § 55-34.3 becomes custodialtrustee. If there is no effective provision for a successor, the beneficiary,if not incapacitated, may designate a successor custodial trustee. If thebeneficiary is incapacitated, or fails to act within ninety days after theineligibility, resignation, death, or incapacity of the custodial trustee,the beneficiary's conservator becomes successor custodial trustee. If thebeneficiary does not have a conservator or the conservator fails to act, theresigning custodial trustee may designate a successor custodial trustee.

If a successor custodial trustee is not designated as provided in thisparagraph, the transferor, the legal representative of the transferor or ofthe custodial trustee, an adult member of the beneficiary's family, theguardian or conservator of the beneficiary, a person interested in thecustodial trust property, or a person interested in the welfare of thebeneficiary may petition the court to designate a successor custodial trustee.

A custodial trustee who declines to serve or resigns, or the legalrepresentative of a deceased or incapacitated custodial trustee, as soon aspracticable, shall put the custodial trust property and records in thepossession and control of the successor custodial trustee. The successorcustodial trustee may enforce the obligation to deliver custodial trustproperty and records and becomes responsible for each item as received.

A beneficiary, the beneficiary's conservator, an adult member of thebeneficiary's family, a guardian of the beneficiary, a person interested inthe custodial trust property, or a person interested in the welfare of thebeneficiary may petition the court to remove the custodial trustee for causeand designate a successor custodial trustee, to require the custodial trusteeto furnish a bond or other security for the faithful performance of fiduciaryduties, or for other appropriate relief.

(1990, c. 264; 1997, c. 801.)