55-34.17 - Distribution on termination. - Virginia Statutes

§ 55-34.17. Distribution on termination.

Upon termination of a custodial trust, the custodial trustee shall transferthe unexpended custodial trust property as follows:

1. To the beneficiary, if not incapacitated or deceased;

2. To the conservator or such other recipient as is designated by the courtfor an incapacitated beneficiary; or

3. Upon the beneficiary's death, in the following order:

a. As last directed in writing signed by the deceased beneficiary while notincapacitated and received by the custodial trustee during the life of thedeceased beneficiary;

b. To the survivor of multiple beneficiaries if survivorship is provided forpursuant to § 55-34.6;

c. As designated in the instrument creating the custodial trust; or

d. To the estate of the deceased beneficiary.

If, when the custodial trust would otherwise terminate, the distributee isincapacitated, the custodial trust continues for the use and benefit of thedistributee as beneficiary until the incapacity is removed or the custodialtrust is otherwise terminated.

Death of the beneficiary does not terminate the power of the custodialtrustee to discharge obligations of the custodial trustee or beneficiaryincurred before the termination of the custodial trust.

(1990, c. 264.)