                                 CODE OF VIRGINIA

DETERMINATION OF INCAPACITY; EFFECT (§ 64.2-909)

A. The custodial trustee shall administer the custodial trust as for an
incapacitated beneficiary if (i) the custodial trust was created under &#xA7;
64.2-904, (ii) the transferor has so directed in the instrument creating the
custodial trust, or (iii) the custodial trustee has determined that the
beneficiary is incapacitated. A custodial trustee may determine that the
beneficiary is incapacitated in reliance upon (a) previous direction or
authority given by the beneficiary while not incapacitated, including direction
or authority pursuant to a durable power of attorney, (b) the certificate of the
beneficiary&#8217;s physician, or (c) other persuasive evidence. On petition of
the beneficiary, the custodial trustee, or other person interested in the
custodial trust property or the welfare of the beneficiary, the court shall
determine whether the beneficiary is incapacitated. Absent determination of
incapacity of the beneficiary, a custodial trustee who has reason to believe
that the beneficiary is incapacitated shall administer the custodial trust in
accordance with the provisions of this chapter applicable to an incapacitated
beneficiary.

B. If a custodial trustee for an incapacitated beneficiary reasonably concludes
that the beneficiary&#8217;s incapacity has ceased, or that circumstances
concerning the beneficiary&#8217;s ability to manage property and business
affairs have changed since the creation of a custodial trust directing
administration as for an incapacitated beneficiary, the custodial trustee may
administer the trust as for a beneficiary who is not incapacitated.

C. Incapacity of a beneficiary does not terminate (i) the custodial trust, (ii)
any designation of a successor custodial trustee, (iii) rights or powers of the
custodial trustee, or (iv) any immunities of third persons acting on
instructions of the custodial trustee.

HISTORY: 1990, c. 264, § 55-34.10; 2012, c. 614.