                                 CODE OF VIRGINIA

CARE OF CUSTODIAL PROPERTY; DUTIES OF CUSTODIAN (§ 64.2-1911)

A. A custodian shall take control of custodial property, register or record
title to custodial property, if appropriate, and collect, hold, manage, invest,
and reinvest custodial property.

B. In dealing with custodial property, a custodian shall observe the standard of
care set forth in the Uniform Prudent Investor Act (&#xA7; 64.2-780 et seq.),
except to the extent provided by &#xA7; 64.2-1502. However, a custodian, in the
custodian&#8217;s discretion and without liability to the minor or the
minor&#8217;s estate, may retain any custodial property received from a
transferor.

C. A custodian may invest in or pay premiums on life insurance or endowment
policies on (i) the life of the minor only if the minor or the minor&#8217;s
estate is the sole beneficiary or (ii) the life of another person in whom the
minor has an insurable interest only to the extent that the minor, the
minor&#8217;s estate, or the custodian in the capacity of custodian is the
beneficiary during the period of custodianship.

D. A custodian at all times shall keep custodial property separate and distinct
from all other property in a manner sufficient to identify it clearly as
custodial property of the minor. Custodial property consisting of an undivided
interest is so identified if the minor&#8217;s interest is held as a tenant in
common and is fixed. Custodial property subject to recordation is so identified
if it is recorded, and custodial property subject to registration is so
identified if it is either registered, or held in an account designated, in the
name of the custodian, followed in substance by the words: &#8220;as a custodian
for&#8230;&#8230;&#x2026;(name of minor) under the Virginia Uniform Transfers to
Minors Act.&#8221;

E. A custodian shall keep records of all transactions with respect to custodial
property, including the information necessary for the preparation of the
minor&#8217;s tax returns, and shall make them available for inspection at
reasonable intervals by a parent or legal representative of the minor or by the
minor if the minor has attained the age of 14 years.

HISTORY: 1988, c. 516, § 31-48; 2007, c. 517; 2012, c. 614.