2006 Code of Virginia § 55-34.18 - Methods and forms for creating custodial trusts

55-34.18. Methods and forms for creating custodial trusts.

A. If a transaction, including a declaration with respect to or a transfer ofspecific property, otherwise satisfies applicable law, the criteria of 55-34.2 are satisfied by either:

1. The execution and either delivery to the custodial trustee or recording ofan instrument in substantially the following form:

TRANSFERUNDERTHEVIRGINIA
UNIFORMCUSTODIALTRUSTACT
I,....................(nameoftransferorornameandrepresentative
capacityifafiduciary),transferto....................(nameoftrustee
otherthantransferor),ascustodialtrusteefor....................(name
ofbeneficiary)asbeneficiaryand....................(nameofdistributee)
asdistributeeonterminationofthetrustinabsenceofdirectionbythe
beneficiaryundertheVirginiaUniformCustodialTrustAct,thefollowing:
....................(insertadescriptionofthecustodialtrustproperty
legallysufficienttoidentifyandtransfereachitemofproperty).
Dated:....................
....................
(signatureoftransferororfiduciary)
2.Theexecutionandtherecordingorgivingnoticeofitsexecutiontothe
beneficiaryofaninstrumentinsubstantiallythefollowingform:
DECLARATIONOFTRUSTUNDERTHEVIRGINIA
UNIFORMCUSTODIALTRUSTACT
I,....................(nameofownerofproperty),declarethathenceforth
Iholdascustodialtrusteefor....................(nameofbeneficiary
otherthantransferor)asbeneficiaryand....................(nameof
distributee)asdistributeeonterminationofthetrustinabsenceof
directionbythebeneficiaryundertheVirginiaUniformCustodialTrustAct,
thefollowing:....................(insertadescriptionofthecustodial
trustpropertylegallysufficienttoidentifyandtransfereachitemof
property).
Dated:....................
....................
(signatureofowner)
3.Eitherformmaybemodifiedbytheownertoinclude,forexample,a
designationofanalternateorsuccessortrusteeortherecipientofthe
custodialpropertyuponterminationofthetrust.
B.Customarymethodsoftransferringorevidencingownershipofpropertymay
beusedtocreateacustodialtrust,includinganyofthefollowing:
1.Registrationofasecurityinthenameofatrustcompany,anadultother
thanthetransferor,orthetransferorifthebeneficiaryisotherthanthe
transferor,designatedinsubstance"ascustodialtrusteefor
....................(nameofbeneficiary)undertheVirginiaUniform
CustodialTrustAct";
2.Deliveryofacertificatedsecurity,oradocumentnecessaryforthe
transferofanuncertificatedsecurity,togetherwithanynecessary
endorsement,toanadultotherthanthetransferorortoatrustcompanyas
custodialtrustee,accompaniedbyaninstrumentinsubstantiallytheform
prescribedinsubdivisionA1;
3.Paymentofmoneyortransferofasecurityheldinthenameofabrokeror
afinancialinstitutionoritsnomineetoabrokerorfinancialinstitution
forcredittoanaccountinthenameofatrustcompany,anadultotherthan
thetransferor,orthetransferorifthebeneficiaryisotherthanthe
transferor,designatedinsubstance"ascustodialtrusteefor
....................(nameofbeneficiary)undertheVirginiaUniform
CustodialTrustAct";
4.Registrationofownershipofalifeorendowmentinsurancepolicyor
annuitycontractwiththeissuerinthenameofatrustcompany,anadult
otherthanthetransferor,orthetransferorifthebeneficiaryisotherthan
thetransferor,designatedinsubstance"ascustodialtrusteefor
....................(nameofbeneficiary)undertheVirginiaUniform
CustodialTrustAct";
5.Deliveryofawrittenassignmenttoanadultotherthanthetransferoror
toatrustcompanywhosenameintheassignmentisdesignatedinsubstanceby
thewords"ascustodialtrusteefor....................(nameof
beneficiary)undertheVirginiaUniformCustodialTrustAct";
6.Irrevocableexerciseofpowerofappointment,pursuanttoitsterms,in
favorofatrustcompany,anadultotherthanthedoneeofthepower,orthe
doneewhoholdsthepowerifthebeneficiaryisotherthanthedonee,whose
nameintheappointmentisdesignatedinsubstance"ascustodialtrusteefor
....................(nameofbeneficiary)undertheVirginiaUniform
CustodialTrustAct";
7.Deliveryofawrittennotificationorassignmentofarighttofuture
paymentunderacontracttoanobligorwhichtransferstherightunderthe
contracttoatrustcompany,anadultotherthanthetransferor,orthe
transferorifthebeneficiaryisotherthanthetransferor,whosenameinthe
notificationorassignmentisdesignatedinsubstance"ascustodialtrustee
for....................(nameofbeneficiary)undertheVirginiaUniform
CustodialTrustAct";
8.Execution,delivery,andrecordationofaconveyanceofaninterestinreal
propertyinthenameofatrustcompany,anadultotherthanthetransferor,
orthetransferorifthebeneficiaryisotherthanthetransferor,designated
insubstance"ascustodialtrusteefor....................(nameof
beneficiary)undertheVirginiaUniformCustodialTrustAct";
9.IssuanceofacertificateoftitlebyanagencyofastateoroftheUnited
Stateswhichevidencestitletotangiblepersonalproperty(i)issuedinthe
nameofatrustcompany,anadultotherthanthetransferor,orthetransferor
ifthebeneficiaryisotherthanthetransferor,designatedinsubstance"as
custodialtrusteefor....................(nameofbeneficiary)underthe
VirginiaUniformCustodialTrustAct,"or(ii)deliveredtoatrustcompanyor
anadultotherthanthetransferororendorsedbythetransferortothat
person,designatedinsubstance"ascustodialtrusteefor
....................(nameofbeneficiary)undertheVirginiaUniform
CustodialTrustAct";or
10.Executionanddeliveryofaninstrumentofgifttoatrustcompanyoran
adultotherthanthetransferor,designatedinsubstance"ascustodialtrustee
for....................(nameofbeneficiary)undertheVirginiaUniform
CustodialTrustAct."

(1990, c. 264.)