CHAPTER 242

4n Act to amend and reenact §§ 31-26, 81-27 and 81-29, as amended, of
the Code of Virginia, relating to de finitions, manner of making gift,
and rights, powers and duties of custodian under the Virginia Uniform
Gifts to Minors Act.
Be it enacted by the General Assembly of Virginia:
1. That 8§ 31-26, 31-27 and 31-29, as amended, of the Code of Virginia
be amended and reenacted as follows:

§ 81-26. In this chapter, unless the context otherwise requires:

(a) An “adult” is a person who has attained the age of twenty-one

ears. ;

(b) A “bank” is any bank, trust company or bank and trust company,
whether State or national, authorized by law to exercise trust powers and
to take, accept and execute trusts of a fiduciary character. —

(c) A “broker” is a person lawfully engaged in the business of effect-
ing transactions in securities for the account of others. The term includes
a bank which effects such transactions. The term also includes a person
lawfully engaged in buying and selling securities for his own account,
through a broker or otherwise, as a part of a regular business.

(d) “Court” means the court having appropriate equity jurisdiction.

(e) “The custodial property” includes .

(1) All securities, * money annuities and life insurance under the
supervision of the same custodian for the same minor as a consequence of
a gift or gifts made to the minor in a manner prescribed in this chapter;

(2) The income from the custodial property; and

(3) The proceeds, immediate and remote, from the sale, exchange,
conversion, investment, reinvestment or other disposition of such securities,
money and income. ;

(f) A “custodian” is a person so designated in a manner prescribed
in this chapter.

(g) A “guardian” of a minor includes the natural guardian, guardian,
committee or curator of his property, estate or person.

(h) An “issuer” is a person who places or authorizes the placing of
his name on a security (other than as a transfer agent) to evidence that
it represents a share, participation or other interest in his property or in
an enterprise or to evidence his duty or undertaking to perform an obliga-
tion evidenced by the security, or who becomes responsible for or in place of
any such person.

(i) A “legal representative” of a person is his executor or the admin-
istrator, guardian, committee, conservator or curator of his property or
estate.

(j) A “member” of a “minor’s family” means any of the minor’s
parents, grandparents, brothers, sisters, uncles and aunts, whether of the
whole blood or the half blood, or by or through legal adoption.

(k) <A “minor’ is a person who has not attained the age of twenty-
one years.

(1) A “security” includes any note, stock, treasury stock, bond, deben-
ture, evidence of indebtedness, certificate of interest or participation in an
oil, gas or mining title or lease or in payments out of production under
such a title or lease, collateral trust certificate, transferable share, voting
trust certificate, or, in general, any interest or instrument commonly known
as a security, or any certificate of interest or participation in, any tem-
porary or interim certificate, receipt or certificate of deposit for, or any
warrant or right to subscribe to or purchase, any of the foregoing. The term
does not include a security of which the donor is the issuer. A security is
in “registered form” when it specifies a person entitled to it or to the rights
it evidences and its transfer may be registered upon books maintained for
that purpose by or on behalf of the issuer.

(m) A “transfer agent” is a person who acts as authenticating trustee,
transfer agent, registrar or other agent for an issuer in the registration
of transfers of its securities or in the issue of new securities or in the
cancellation of surrendered securities.
(n) A “trust company” is a bank authorized to exercise trust power
in this State.

(o) A “savings and loan association” is a savings and loan association
incorporated under the laws of Virginia or under the laws of the United
States and authorized to conduct its business as a savings and loan asso-
ciation in Virginia.

(p) “Life insurance” and “annuities” shall be deemed to include only
mmsurance and annuities on the life of a minor or a member of the minor’s
family as herein defined.

§ 31-27. (a) An adult person may, during his lifetime, make a gift
of a security, * money, annuities or life insurance, to a person who is a
minor on the date of the gift:

(1) If the subject of the gift is a security in registered form, by
registering it in the name of the donor, another adult person or a trust
company, followed, in substance, by the words: “as custodian for (name
of minor) — oeerenerrnnenneeetnder the Virginia Uniform Gifts to
Minors Act’;

(2) If the subject of the gift is a security not in registered form, by
delivering it to an adult person other than the donor or a trust company,
accompanied by a statement of gift in the following form, in substance,

signed by the donor and the person designated as custodia
“GET UNDER THE VIRGINIA UNIFORM GIFTS TO MIN ORS ACT

I, (name of donor) peveenersevinienenennne_ereby deliver to (name of
custodian Leese. 48 Custodian for. (name of minor)
een -UNder the Virginia Uniform Gifts to Minors
Act, Act, the following security (ies) : (insert an appropriate description of the
security or securities delivered sufficient to identify it or them) (signature
of donor) Lewseeeeeeee.(name of custodian)...
hereby acknowledges receipt of the above described security ( ies) a as cus-
todian for the above minor under the Virginia Uniform Gifts to Minors
Act. Dated. (Signature of custodian)..._.....
(3) If the subject of the gift is money, by paying or delivering it to to a
broker or a bank or savings and loan association for credit to an account
in the name of the donor, another adult person or a bank with trust powers,
followed, in substance, by the words: “as custodian for (name of minor)
deere enen-.Under the Virginia Uniform Gifts to Minors Act”.

(4) If the subject of the gift is life insurance, or an annuity the own-
ership of the policy shall be registered by the donor of such policy tn
his own name or in the name of an adult member of the minor’s family or
in the name of any guardian of the minor, followed by the words: “as
custodian for (name of minor) _._____._____.._.._--___under the Virginia
Uniform Gifts to Minors Act”, and such policy shall be delivered to the
person tn whose name it 18 thus registered as custodian. If the policy ts
registered in the name of the donor, as custodian, such registration shall
of itself constitute the delivery required by this section.

(b) Any gift made in a manner prescribed in subsection (a) may be
made to only one minor and only one person may be the custodian.

(c) A donor who makes a gift to a minor in a manner prescribed in
subsection (a) shall promptly do all things within his power to put the
subject of the gift in the possession and control of the custodian, but
neither the donor’s failure to comply with this subsection, nor his designa-
tion of an ineligible person as custodian, nor renunciation by the person
designated as custodian affects the consummation of the gift.

§ 31-29. (a) The custodian shall collect, hold, manage, invest and
reinvest the custodial prope

(b) The custodian shall pay over to the minor for expenditure by him,
or expend for the minor’s benefit, so much of or all the custodial property
as the custodian deems advisable for the support, maintenance, education

and benefit of the minor in the manner, at the time or times, and to the
extent that the custodian in his discretion deems suitable and proper, with
or without court order, with or without regard to the duty of himself
or of any other person to support the minor or his ability to do so, and with
or without regard to any other income or property of the minor which may
be applicable or available for any such purpose.

(c) The court, on the petition of a parent or guardian of the minor
or of the minor, if he has attained the age of fourteen years, may order
the custodian to pay over to the minor for expenditure by him or to expend
so much of or all the custodial property as is necessary for the minor’s
support, maintenance or education.

(d) To the extent that the custodial property is not so expended, the
custodian shall deliver or pay it over to the minor on his attaining the
age of twenty-one years, or if the minor dies before attaining the age of
twenty-one years, he shall thereupon deliver or pay it over to the estate
of the minor.

(e) The custodian, notwithstanding statutes restricting investments
by fiduciaries, shall invest and reinvest the custodial property as would
@ prudent man of discretion and intelligence who is seeking a reasonable
income and the preservation of his capital, except that he may, in his dis-
cretion and without liability to the minor or his estate, retain a security
given to the minor in a manner prescribed in this chapter. The custodian
may also use funds in his custody to purchase annuities or life insurance
on the life of the minor and to pay premiums thereon, and to retain and
use funds in his custody to pay premiums on annuities and life insurance
given to the minor in accordance with the provisions of paragraph (4) of
subsection (a) of § 31-27.

(f) The custodian may sell, exchange, convert or otherwise dispose of
custodial property in the manner, at the time or times, for the price or
prices and upon the terms he deems advisable. He may vote in person or
by general or limited proxy a security which is custodial property. He may
consent, directly or through a committee or other agent, to the reorganiza-
tion, consolidation, merger, dissolution or liquidation of an issuer, a secur-
ity of which is custodial property, and to the sale, lease, pledge or mortgage
of any property by or to such an issuer, and to any other action by such
an issuer. He may execute and deliver any and all instruments in writing
which he deems advisable to carry out any of his powers as custodian.

(g) The custodian shall register each security which is custodial prop-
erty and in registered form in the name of the custodian, followed, in
substance, by the words: “as custodian for (name of minor) ..__._................
under the Virginia Uniform Gifts to Minors Act”. The custodian shall hold
all money which is custodial property in an account with a broker or in a
bank or a savings and loan association in the name of the custodian, fol-
lowed, in substance, by the words: “as custodian for (name of minor)
a nETn under the Virginia Uniform Gifts to Minors Act’. The
custodian shall keep all other custodial property separate and distinct from
his own property in a manner to identify it clearly as custodial property.

(h) The custodian shall keep records of all transactions with respect
to the custodial property and make them available for inspection at reason-
able intervals by a parent or legal representative of the minor or by the
minor, if he has attained the age of fourteen years.

(i) A custodian has and holds as powers in trust, with respect to the
custodial property, in addition to the rights and powers provided in this
chapter, all the rights and powers which a guardian has with respect to
property not held as custodial property.

(j) If the subject of the gift 1s life insurance, or an annuity the
custodian shall have all of the incidents of ownership in the policy which
he may hold as custodian to the same extent as tf he were the owner
thereof personally. The designated beneficiary of any such policy held by
a custodian shall be the minor or, in the event of his death, the minor’s
estate.
(k) Al life insurance and annuity policies held by the custodian
whether acquired under the provisions of paragraph (4) of subsection (a)
of § 31-27 or subsection (e) of this section shall be registered in the name
of the custodian as owner “as custodian for (name of minor) __________--____
under the Virginia Uniform Gifts to Minors Act”. The custodian shall have
and may exercise as custodian all of the incidents of ownership in such
life insurance and annuity policies to the same extent as if he were the
owner thereof personally, including, but not limited to, the right to borrow
on such policies for the payment of premiums. If a policy is issued on the
life of the minor, the designated beneficiary shall be the minor’s estate.
If a policy is issued on the life of a person other than the minor, the bene-
ficiary shall be the custodian, or, if the custodianship has ceased, the minor,
or, in the event of the minor’s death, the minor’s estate.