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:
TRANSFER UNDER THE VIRGINIA
UNIFORM CUSTODIAL TRUST ACT
I, .................... (name of transferor or name and representative
capacity if a fiduciary), transfer to .................... (name of trustee
other than transferor), as custodial trustee for .................... (name
of beneficiary) as beneficiary and .................... (name of distributee)
as distributee on termination of the trust in absence of direction by the
beneficiary under the Virginia Uniform Custodial Trust Act, the following:
.................... (insert a description of the custodial trust property
legally sufficient to identify and transfer each item of property).
Dated: ....................
....................
(signature of transferor or fiduciary)
2. The execution and the recording or giving notice of its execution to the
beneficiary of an instrument in substantially the following form:
DECLARATION OF TRUST UNDER THE VIRGINIA
UNIFORM CUSTODIAL TRUST ACT
I, .................... (name of owner of property), declare that henceforth
I hold as custodial trustee for .................... (name of beneficiary
other than transferor) as beneficiary and .................... (name of
distributee) as distributee on termination of the trust in absence of
direction by the beneficiary under the Virginia Uniform Custodial Trust Act,
the following: .................... (insert a description of the custodial
trust property legally sufficient to identify and transfer each item of
property).
Dated: ....................
....................
(signature of owner)
3. Either form may be modified by the owner to include, for example, a
designation of an alternate or successor trustee or the recipient of the
custodial property upon termination of the trust.
B. Customary methods of transferring or evidencing ownership of property may
be used to create a custodial trust, including any of the following:
1. Registration of a security in the name of a trust company, an adult other
than the transferor, or the transferor if the beneficiary is other than the
transferor, designated in substance "as custodial trustee for
.................... (name of beneficiary) under the Virginia Uniform
Custodial Trust Act";
2. Delivery of a certificated security, or a document necessary for the
transfer of an uncertificated security, together with any necessary
endorsement, to an adult other than the transferor or to a trust company as
custodial trustee, accompanied by an instrument in substantially the form
prescribed in subdivision A1;
3. Payment of money or transfer of a security held in the name of a broker or
a financial institution or its nominee to a broker or financial institution
for credit to an account in the name of a trust company, an adult other than
the transferor, or the transferor if the beneficiary is other than the
transferor, designated in substance "as custodial trustee for
.................... (name of beneficiary) under the Virginia Uniform
Custodial Trust Act";
4. Registration of ownership of a life or endowment insurance policy or
annuity contract with the issuer in the name of a trust company, an adult
other than the transferor, or the transferor if the beneficiary is other than
the transferor, designated in substance "as custodial trustee for
.................... (name of beneficiary) under the Virginia Uniform
Custodial Trust Act";
5. Delivery of a written assignment to an adult other than the transferor or
to a trust company whose name in the assignment is designated in substance by
the words "as custodial trustee for .................... (name of
beneficiary) under the Virginia Uniform Custodial Trust Act";
6. Irrevocable exercise of power of appointment, pursuant to its terms, in
favor of a trust company, an adult other than the donee of the power, or the
donee who holds the power if the beneficiary is other than the donee, whose
name in the appointment is designated in substance "as custodial trustee for
.................... (name of beneficiary) under the Virginia Uniform
Custodial Trust Act";
7. Delivery of a written notification or assignment of a right to future
payment under a contract to an obligor which transfers the right under the
contract to a trust company, an adult other than the transferor, or the
transferor if the beneficiary is other than the transferor, whose name in the
notification or assignment is designated in substance "as custodial trustee
for .................... (name of beneficiary) under the Virginia Uniform
Custodial Trust Act";
8. Execution, delivery, and recordation of a conveyance of an interest in real
property in the name of a trust company, an adult other than the transferor,
or the transferor if the beneficiary is other than the transferor, designated
in substance "as custodial trustee for .................... (name of
beneficiary) under the Virginia Uniform Custodial Trust Act";
9. Issuance of a certificate of title by an agency of a state or of the United
States which evidences title to tangible personal property (i) issued in the
name of a trust company, an adult other than the transferor, or the transferor
if the beneficiary is other than the transferor, designated in substance "as
custodial trustee for .................... (name of beneficiary) under the
Virginia Uniform Custodial Trust Act," or (ii) delivered to a trust company or
an adult other than the transferor or endorsed by the transferor to that
person, designated in substance "as custodial trustee for
.................... (name of beneficiary) under the Virginia Uniform
Custodial Trust Act"; or
10. Execution and delivery of an instrument of gift to a trust company or an
adult other than the transferor, designated in substance "as custodial trustee
for .................... (name of beneficiary) under the Virginia Uniform
Custodial Trust Act."
(1990, c. 264.)