                                 CODE OF VIRGINIA

DISTRIBUTION ON TERMINATION (§ 64.2-916)

A. Upon termination of a custodial trust, the custodial trustee shall transfer
the unexpended custodial trust property as follows:

   1. To the beneficiary, if not incapacitated or deceased;

   2. To the conservator or such other recipient as is designated by the court
   for an incapacitated beneficiary; or

   3. Upon the beneficiary&#8217;s death, in the following order:
   				a. As last directed in writing signed by the deceased beneficiary while
   not incapacitated and received by the custodial trustee during the life of the
   deceased beneficiary;
   				b. To the survivor of multiple beneficiaries if survivorship is provided
   for pursuant to &#xA7; 64.2-905;
   				c. As designated in the instrument creating the custodial trust; or
   				d. To the estate of the deceased beneficiary.

B. If, when the custodial trust would otherwise terminate, the distributee is
incapacitated, the custodial trust continues for the use and benefit of the
distributee as beneficiary until the incapacity is removed or the custodial
trust is otherwise terminated.

C. Death of the beneficiary does not terminate the power of the custodial
trustee to discharge obligations of the custodial trustee or beneficiary
incurred before the termination of the custodial trust.

HISTORY: 1990, c. 264, § 55-34.17; 2012, c. 614.