55-34.2 - Custodial trust; creation and termination; general provisions. - Virginia Statutes

§ 55-34.2. Custodial trust; creation and termination; general provisions.

A. A person may create a custodial trust of property by a written transfer ofthe property to another person, evidenced by registration if the property isof a type subject to registration, or by other instrument of transfer,executed in any lawful manner, naming as beneficiary an individual who may bethe transferor, in which the transferee is designated, in substance, ascustodial trustee under this chapter.

B. In addition, a person may create a custodial trust of property by awritten declaration, evidenced by registration of the property if theproperty is of a type subject to registration, or by other instrument ofdeclaration executed in any lawful manner, describing the property and namingas beneficiary an individual other than the declarant, in which the declarantas titleholder is designated, in substance, as custodial trustee under thischapter. A registration or other declaration of trust for the sole benefit ofthe declarant is not a custodial trust under this chapter.

C. Title to custodial trust property is in the custodial trustee and thebeneficial interest is in the beneficiary.

D. The beneficiary, if not incapacitated, may terminate a custodial trust bydelivering to the custodial trustee a writing signed by the beneficiarydeclaring the termination. The conservator of an incapacitated beneficiarymay similarly terminate the custodial trust in this manner but only ifgranted the power by the circuit court that appointed him in a proceeding inwhich the custodial trustee is made a party. If not previously terminated,the custodial trust terminates on the death of the beneficiary. A transferormay not terminate a custodial trust except as provided in this subsection.

E. Any person may augment existing custodial trust property by the additionof other property pursuant to this chapter.

F. The transferor may designate, or authorize the designation of, a successorcustodial trustee in the trust instrument.

G. This chapter does not displace or restrict other means of creating trusts.A trust whose terms do not conform to this chapter may be enforceableaccording to its terms under other law.

(1990, c. 264.)