Vt. Stat. Ann. tit. 14, § 3227
Liability to third persons
Redline — July 1, 2021 → current.View current text →
Current — June 1, 2022
As of July 1, 2021
(1) 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: a contract entered into by a custodian acting in a custodial capacity;
(1) 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: a contract entered into by a custodian acting in a custodial capacity;
(2) an obligation arising from the ownership or control of custodial property; or
(2) an obligation arising from the ownership or control of custodial property; or
(3) a tort committed during the custodianship.
(3) a tort committed during the custodianship.
(4) A custodian is not personally liable: on a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or
(4) A custodian is not personally liable: on a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or
(5) for an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.
(5) for an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.
(6) A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship, unless the minor is personally at fault. Added 2015, No. 7, § 1.
(6) A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship, unless the minor is personally at fault.
OFFICIAL COMMENT
This section has no counterpart in the 1966 Act and is based upon Section 5-429 of the Uniform Probate Code, relating to limitations on the liability of conservators. Because some forms of custodial property now permitted under this Act can give rise to liabilities as well as benefits (e.g., general partnership interests, interests in real estate or business proprietorships, automobiles, etc.) the Committee believes it is necessary to protect the minor and other assets he or she might have or acquire from such liabilities, since the minor is unable to disclaim a transfer to a custodian for his benefit. Similar protection for the custodian is necessary so as not to discourage nonprofessional or uncompensated persons from accepting the office. Therefore this section generally limits the claims of third parties to recourse against the custodial property, as third parties dealing with a trust are generally limited to recourse against the trust corpus.
The custodian incurs personal liability only as provided in subsection (b) for actual fault or for failure to disclose his or her custodial capacity "in the contract" when contracting with third parties. In oral contracts, oral disclosure of the custodial capacity is sufficient. The minor, on the other hand, incurs personal liability under subsection (c) only for actual fault.
When custodial property is subjected to claims of third parties under this section, the minor or his or her legal representative, if not a party to the action by which the claim is successfully established, may seek to recover the loss from the custodian in a separate action. See section 3229 of this chapter and the accompanying Comment.
Official source: Vermont General Assembly. Reproduced from public-domain Vermont statutes; confirm against the official source for the current text. Not legal advice.