2006 Code of Virginia § 55-34.7 - General duties of custodial trustee

55-34.7. General duties of custodial trustee.

If appropriate, a custodial trustee shall register or record the instrumentvesting title to custodial trust property. If the beneficiary is notincapacitated, a custodial trustee shall follow the directions of thebeneficiary in the management, control, investment, or retention of thecustodial trust property. In the absence of effective contrary direction bythe beneficiary while not incapacitated, the custodial trustee shall observethe standard of care that would be observed by a prudent person dealing withsuch person's own property and is not limited by any other law restrictinginvestments by fiduciaries. However, a custodial trustee, in the custodialtrustee's discretion, may retain any custodial trust property received fromthe transferor. If a custodial trustee has a special skill or expertise or isnamed custodial trustee on the basis of representation of a special skill orexpertise, the custodial trustee shall use that skill or expertise. Subjectto this paragraph, a custodial trustee shall take control of and collect,hold, manage, invest, and reinvest custodial trust property.

A custodial trustee at all times shall keep custodial trust property of whichthe custodial trustee has control, separate from all other property in amanner sufficient to identify it clearly as custodial trust property of thebeneficiary. Custodial trust property, the title to which is subject torecordation, is so identified if an appropriate instrument so identifying theproperty is recorded, and custodial trust property subject to registration isso identified if it is registered, or held in an account in the name of thecustodial trustee, designated in substance: "as custodial trustee for . . .. . . . . . . . . . . . . . (name of beneficiary) under the Virginia UniformCustodial Trust Act."

A custodial trustee shall keep records of all transactions with respect tocustodial trust property, including information necessary for the preparationof tax returns, and shall make the records and information available atreasonable times to the beneficiary or legal representative of thebeneficiary.

The exercise of a durable power of attorney for an incapacitated beneficiaryis not effective to terminate or direct the administration or distribution ofa custodial trust.

(1990, c. 264.)

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