Title 14, Title 14: Decedents' Estates and Fiduciary Relations

§ 3211. Definitions As used in this chapter: (1) “Adult” means an individual who has attained 21 years of age. (2) “Broker” means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person’s own account or for the account of ot…

§ 3212. Scope and jurisdiction (a) This chapter applies to a transfer that refers to this chapter in the designation under subsection 3219(a) of this title by which the transfer is made if, at the time of the transfer, the transferor, the minor, or the custodian is a resident of …

§ 3213. Nomination of custodian (a) A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming th…

§ 3214. Transfer by gift or exercise of power of appointment A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor, pursuant to section 3219 of this title. (Added 2015, No. 7,…

§ 3215. Transfer authorized by will or trust (a) A personal representative or trustee may make an irrevocable transfer pursuant to section 3219 of this title to a custodian for the benefit of a minor as authorized in the governing will or trust. (b) If the testator or settlor has…

§ 3216. Other transfer by fiduciary (a) Subject to subsection (c) of this section, a personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor, pursuant to section 3219 of this title, in the absen…

§ 3217. Transfer by obligor (a) Subject to subsections (b) and (c) of this section, a person not subject to section 3215 or 3216 of this title who holds property of or owes a liquidated debt to a minor not having a financial guardian may make an irrevocable transfer to a custodia…

§ 3218. Receipt for custodial property A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian, pursuant to this chapter. (Added 2015, No. 7, § 1.)

§ 3219. Manner of creating custodial property and effecting transfer; designation of initial custodian; control (a) Custodial property is created and a transfer is made whenever: (1) An uncertificated security or a certificated security in registered form is either: (A) registere…

§ 3220. Single custodianship A transfer may be made only for one minor, and only one person may be the custodian. All custodial property held under this chapter by the same custodian for the benefit of the same minor constitutes a single custodianship. (Added 2015, No. 7, § 1.)

§ 3221. Validity and effect of transfer (a) The validity of a transfer made in a manner prescribed in this chapter is not affected by: (1) failure of the transferor to comply with subsection 3219(c) of this title concerning possession and control; (2) designation of an ineligible…

§ 3222. Care of custodial property (a) A custodian shall: (1) take control of custodial property; (2) register or record title to custodial property if appropriate; and (3) collect, hold, manage, invest, and reinvest custodial property. (b) In dealing with custodial property, a c…

§ 3223. Powers of custodian (a) A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capaci…

§ 3224. Use of custodial property (a) A custodian may deliver or pay to the minor or expend for the minor’s benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to: (1) the duty…

§ 3225. Custodian’s expenses, compensation, and bond (a) A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian’s duties. (b) Except for one who is a transferor under section 3214 of this title, a cust…

§ 3226. Exemption of third person from liability A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledg…

§ 3227. Liability to third persons (a) A claim based on any of the following may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor: (1) a contract enter…

§ 3228. Renunciation, resignation, death, or removal of custodian; designation of successor custodian (a) A person nominated under section 3213 of this title or designated under section 3219 of this title as custodian may decline to serve by delivering a valid disclaimer to the p…

§ 3229. Accounting by and determination of liability of custodian (a) A minor who has attained 14 years of age, the minor’s financial guardian or legal representative, a guardian of the minor appointed pursuant to section 2628 or 2664 of this title, an adult member of the minor’s…

§ 3230. Termination of custodianship The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor’s estate upon the earliest of: (1) the minor’s attainment of 21 years of age with respect to custodial property transferred under section…

§ 3231. Applicability This chapter applies to a transfer within the scope of section 3212 of this title made after its effective date if: (1) the transfer purports to have been made under the Vermont Uniform Gifts to Minors Act; or (2) the instrument by which the transfer purport…

§ 3232. Effect on existing custodianships (a) Any transfer of custodial property as now defined in this chapter made before July 1, 2015 is validated, notwithstanding that there was no specific authority in the Vermont Uniform Gifts to Minors Act for the coverage of custodial pro…

§ 3233. Uniformity of application and construction This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it. (Added 2015, No. 7, § 1.)

§ 3234. Severability If any provisions of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and, to…

§ 3321. Short title This subchapter may be cited as the Uniform Principal and Income Act. (Added 2011, No. 114 (Adj. Sess.), § 1.)

§ 3322. Definitions As used in this chapter: (1) “Accounting period” means a calendar year unless another 12-month period is selected by a fiduciary. The term includes a portion of a calendar year or other 12-month period that begins when an income interest begins or ends when an…

§ 3323. Fiduciary duties; general principles (a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of subchapter 2 or 3 of this chapter, a fiduciary: (1) shall administer a trust or estate in accordance wi…

§ 3324. Trustee’s power to adjust (a) A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed …

§ 3325. Judicial control of discretionary power (a) The court may not order a fiduciary to change a decision to exercise or not to exercise a discretionary power conferred by this chapter unless it determines that the decision was an abuse of the fiduciary’s discretion. A fiducia…

§ 3326. Uniformity of application and construction In applying and construing this chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. (Added 2011, No. 114 (Adj. Sess.), § 1.)

§ 3327. Severability clause If any provision of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, a…

§ 3331. Determination and distribution of net income After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: (1) A fiduciary of an estate or of a terminating income interest shall determine the amount of net income …

§ 3332. Distribution to residuary and remainder beneficiaries (a) Each beneficiary described in subdivision 3331(4) of this title is entitled to receive a portion of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using values as o…

§ 3341. When right to income begins and ends (a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes …

§ 3342. Apportionment of receipts and disbursements when decedent dies or income interest begins (a) A trustee shall allocate an income receipt or disbursement other than one to which subdivision 3331(1) of this title applies to principal if its due date occurs before a decedent …

§ 3343. Apportionment when income interest ends (a) As used in this section, “undistributed income” means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has bee…

§ 3351. Character of receipts (a) As used in this section, “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than …

§ 3352. Distribution from trust or estate A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate, in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distr…

§ 3353. Business and other activities conducted by trustee (a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the…

§ 3354. Principal receipts A trustee shall allocate to principal: (1) to the extent not allocated to income under this chapter, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payer under a …

§ 3355. Rental property To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a le…

§ 3356. Obligation to pay money (a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on a bond or an obligation to pay money to the fiduciary shall be allocated to income. (b) Except as provided in subsections (c) and (d) of this section,…

§ 3357. Insurance policies and similar contracts (a) Except as otherwise provided in subsection (b) of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, includin…

§ 3358. Insubstantial allocations not required If a trustee determines that an allocation between principal and income required by section 3359, 3360, 3361, 3362, or 3365 of this title is insubstantial, the trustee may allocate the entire amount to principal unless one of the cir…

§ 3359. Deferred compensation, annuities, and similar payments (a) In this section: (1) “Payment” means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the paye…

§ 3360. Liquidating asset (a) As used in this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, an…