S*78 Session 103 (1979-1980)
S*0078(Rat #0417, Act #0367 of 1980) General Bill, By H.E. McDonald
A Bill to amend Chapter 3 of Title 35, Code of Laws of South Carolina, 1976,
as amended, "The Uniform Gifts to Minors Act", so as to modify certain
definitions therein, add to types of property subject to the act, modify
procedures in the transfer of property to minors and to further provide for
gifts by will, in trust or interests in real property.
01/09/79 Senate Introduced and read first time SJ-44
01/09/79 Senate Referred to Committee on Judiciary SJ-44
06/28/79 Senate Committee report: Favorable Judiciary SJ-15
07/03/79 Senate Read second time SJ-16
07/10/79 Senate Read third time and sent to House SJ-11
07/11/79 House Introduced and read first time HJ-2992
07/11/79 House Referred to Committee on Ways and Means HJ-2992
04/03/80 House Committee report: Favorable with amendment Ways
and Means HJ-1852
04/09/80 House Amended HJ-1958
04/09/80 House Read second time HJ-1958
04/10/80 House READ THIRD TIME HJ-1983
04/10/80 House Returned HJ-1983
04/10/80 Senate Concurred in House amendment and enrolled SJ-4
04/16/80 Senate Ratified R 417 SJ-27
04/22/80 Signed By Governor
04/22/80 Effective date 04/22/80
04/22/80 Act No. 367
04/30/80 Copies available
(A367, R417, S78)
AN ACT TO AMEND CHAPTER 3 OF TITLE 35, CODE OF LAWS OF SOUTH CAROLINA, 1976,
AS AMENDED, "THE UNIFORM GIFTS TO MINORS ACT", SO AS TO MODIFY
CERTAIN DEFINITIONS THEREIN, ADD TO TYPES OF PROPERTY SUBJECT TO THE ACT,
MODIFY PROCEDURES IN THE TRANSFER OF PROPERTY TO MINORS AND TO FURTHER PROVIDE
FOR GIFTS BY WILL, IN TRUST OR INTERESTS IN REAL PROPERTY.
Be it enacted by the General Assembly of the State of South Carolina:
Uniform Gifts to Minors Act
Section 1. Chapter 3 of Title 35 of the 1976 Code, as last amended by Act
108 of 1977, is further amended to read:
"Chapter 3
Uniform Gifts to Minors Act
Section 35-3-10. This chapter may be cited as the 'South Carolina Uniform
Gifts to Minors Act'.
Section 35-3-20. In this chapter unless the context otherwise requires:
(1) 'Adult' is a person who has attained the age of eighteen years.
(2) 'Bank' is any bank, trust company, national banking association or
industrial bank.
(3) 'Broker' is a person lawfully engaged in the business of effecting
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.
(4) 'Court' means the circuit court.
(5) 'Custodial property' includes:
(a) All securities, life insurance policies, annuity contracts, real
estate, tangible personal property and money and any other type of property
under the supervision of the same custodian for the same minor as a
consequence of a gift made to the minor in a manner prescribed in this
chapter.
(b) The income from the custodial property.
(c) The proceeds, immediate and remote, from the sale, exchange,
conversion investment, reinvestment, surrender or other disposition of such
securities, money, life insurance policies, annuity contracts, real estate,
tangible personal property and other property.
(6) 'Custodian' is a person so designated in a manner prescribed in this
chapter and the term includes a successor custodian.
(7) 'Guardian' of a minor means the general guardian, tutor or curator of
his property or estate, appointed or qualified by a court of this State or
another state.
(8) '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 obligation evidenced by the
security or who becomes responsible for or in place of any such person.
(9) 'Legal representative' of a person is his executor or the administrator,
general guardian, guardian, committee, conservator, tutor or curator of his
property or estate.
(10) '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.
(11) 'Minor' is a person who has not attained the age of eighteen years.
(12) 'Savings and loan association' is a state-chartered savings and loan
association or building and loan association or a federally chartered savings
and loan association.
(13) 'Security' includes any note, stock, treasury stock, bond, debenture,
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, any certificate of interest or participation in any temporary 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.
(14) '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 in the
cancellation of surrendered securities.
(15) 'Trust company' is a bank, corporation or other legal entity authorized
to exercise trust powers in this State.
(16) 'Financial institution' is a bank, a federal savings and loan
association, a savings institution chartered and supervised as a savings and
loan or similar institution under federal law or the laws of a state, a
federal credit union or a credit union chartered and supervised under the laws
of a state; a 'domestic financial institution' is one chartered and supervised
under the laws of this State or chartered and supervised under federal law and
having its principal office in this State; an 'insured financial institution'
is one in which deposits (including a savings, share certificate or deposit
account) are, in whole or in part, insured by the Federal Deposit Insurance
Corporation, by the Federal Savings and Loan Insurance Corporation or by a
deposit insurance fund approved by this State.
(17) 'Life insurance policy or annuity contract' means a life insurance
policy or annuity contract issued by an insurance company on the life of a
minor to whom a gift of the policy or contract is made in the manner
prescribed in this chapter or on the life of a member of the minor's family.
Section 35-3-30. (1) An adult person may, during his lifetime, make a gift
of a security, a life insurance policy or annuity contract or money or real
estate, tangible personal property or any other property to a person who is a
minor on the date of the gift:
(a) 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
_________________ under the Uniform Gifts to Minors Act'. (name of minor)
(b) If the subject of the gift is a security not in registered form, by
delivering it to an adult other than the donor, a guardian of the minor 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 custodian:
'GIFT UNDER THE SOUTH CAROLINA UNIFORM GIFTS TO MINORS ACT
____________ hereby delivers to ________________
(name of donor) (name of custodian)
as custodian for __________ under the South Carolina
(name of minor)
Uniform Gifts to Minors Act the following security: (insert an appropriate
description of the security delivered sufficient to identify it).
__________________________________
(signature of donor)
____________________ hereby acknowledges receipt of the above-
(name of custodian)
described security as custodian for the above minor under the Uniform Gifts to
Minors Act.
Dated:________________
__________________________
(Signature of custodian)'
(c) If the subject of the gift is money, by paying or delivering it to a
broker or a domestic financial institution for credit to an account in the
name of the donor, another adult or a trust company followed in substance by
the words: 'as custodian for __________
(name of minor)
under the Uniform Gifts to Minors Act'.
(d) If the subject of the gift is a life insurance policy or annuity
contract, by causing the ownership of the policy or contract to be registered
with the issuing insurance company in the name of the donor, another adult or
a trust company followed in substance by the words 'as custodian for ___________ under the Uniform Gifts to Minors Act'. (name of
minor)
(e) If the subject of the gift is an interest in real estate, by executing
and delivering in the appropriate manner a deed, assignment or similar
instrument in the name of the donor, another adult or guardian of the minor or
a trust company followed in substance by the words: 'as custodian for ___________ under the Uniform Gifts to Minors Act'. (name
of minor)
(f) If the subject of the gift is an interest in any property not described
in items (a) through (e) above, by causing the ownership of the property to be
transferred by any written document in the name of the donor, another adult, a
guardian or the minor or a trust company followed in substance by the words:
'as custodian for ______________ under the Uniform Gifts to Minors Act'.
(name of minor)
(g) If the gift is by will, by stating in the will that the bequest or
devise is made under the South Carolina Uniform Gifts to Minors Act. Unless
the testator in his will designates the custodian, who shall be an adult, a
guardian of the minor or a trust company, his personal representative shall,
subject to any limitations contained within the will, have the power to name
as the custodian an adult a guardian of the minor or a trust company and shall
distribute the subject of the gift by transferring it in the manner and form
provided in the preceding items of this subsection.
(h) If the gift is preceded by a gift in trust to some other person, by
stating in the will or inter vivos trust instrument that it is made under the
South Carolina Uniform Gifts to Minors Act. Unless the custodian, who shall be
an adult, a guardian of the minor or a trust company, is designated in the
will or inter vivos trust instrument, the trustee shall, subject to any
limitations contained within the will or inter vivos trust instrument, have
the power to name as custodian an adult, a guardian of the minor or a trust
company and shall distribute the subject of the gift by transferring it in the
manner and form provided in the preceding items of this subsection.
(2) Any gift made in a manner prescribed in subsection (1) may be made to
only one minor and only one person may be the custodian.
(3) A donor who makes a gift to a minor in the manner prescribed in
subsection (1) shall promptly do all things within his power to put the
subject of the gift in the possession and control of the custodian but the
donor's failure to comply with this subsection, his designation of an
ineligible person as custodian, or renunciation by the person designated as
custodian shall not affect the consummation of the gift.
(4) Whether or not a gift of the ownership of a life insurance policy or
annuity contract has been made, the owner of such a policy or contract may
designate a custodian (or a successor custodian) as the beneficiary of any
such policy or contract. When the custodian receives any proceeds of such
policy or contract, the proceeds shall at that time become custodian property.
Section 35-3-40. (1) A gift made in a manner prescribed in this chapter is
irrevocable and conveys to the minor indefeasibly vested legal title to the
security, life insurance policy, annuity contract, money, real estate or any
other property given, but no guardian of the minor has any right, power, duty
or authority with respect to the custodial property except as provided in this
chapter.
(2) By making a gift in a manner prescribed in this chapter, the donor
incorporates in his gift, inter vivos trust instrument or will all provisions
of this chapter and grants to the custodian and to any issuer, transfer agent,
bank, life insurance company, broker or third person dealing with a person
designated as custodian the respective powers, rights and immunities provided
in this chapter.
Section 35-3-50. (1) The custodian shall collect, hold, manage, invest and
reinvest the custodial property.
(2) 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.
(3) 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.
(4) To the extent that the custodial property is not expended, the custodian
shall deliver, convey, or pay it over to the minor on his attaining the age of
eighteen years or, if the minor dies before attaining the age of eighteen
years, he shall thereupon deliver or pay it over to the estate of the minor.
(5) The custodian, notwithstanding statutes restricting investments by
fiduciaries, shall invest and reinvest the custodial property as would a
prudent man of discretion and intelligence who is seeking a reasonable income
and the preservation of his capital, except that he may, in his discretion and
without liability to the minor or his estate, retain custodial property given
to the minor in a manner prescribed in this chapter or hold money so given if
an account in the financial institution to which it was paid or delivered by
the donor.
(6) The custodian may sell, exchange, convert, surrender 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
reorganization, consolidation, merger, dissolution or liquidation of an
issuer, a security 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. With respect to any interest in real estate, he may perform the
same acts that any unmarried adult could perform, including, but not limited
to, the power to buy, sell, assign, transfer, convey, dedicate partition,
exchange, mortgage, create or redeem ground rents, deeds, grant or exercise
options, effect and keep in force fire, rent, liability, casualty, and other
insurance; make, execute, acknowledge, and deliver deeds, conveyances,
mortgages, releases, leases, including leases for ninety-nine years renewable
forever, and leases extending beyond the minority of the minor; collect rents;
improve, subdivide, or develop property; construct, alter, demolish or repair
property; settle boundary lines and easements; pay taxes; and protect
assessments.
(7) The custodian shall register each security which is custodial property
and in registered form in the name of the custodian followed in substance by
the words: 'as custodian for _________ .
(name of minor)
under the Uniform Gifts to Minors Act'. The custodian shall hold all money
which is custodial property in an account with a broker or in an insured
financial institution in the name of the custodian followed in substance by
the words: 'as custodian for ___________
(name of minor) under the 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.
(8) The custodian shall keep records of all transactions with respect to the
custodial property and make them available for inspection at reasonable
intervals by a parent or legal representative of the minor or by the minor, if
he has attained the age of fourteen years.
(9) A custodian has, 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.
(10) If the subject of the gift is a life insurance policy or annuity
contract, the custodian:
(a) In his capacity as custodian, has all the incidents of ownership in
the policy or contract to the same extent as if he were the owner, except that
the designated beneficiary of any policy or contract on the life of the minor
shall be the minor's estate and the designated beneficiary of any policy or
contract on the life of a person other than the minor shall be the custodian
as custodian for the minor for whom he is acting;
(b) May pay premiums on the policy or contract out of the custodial
property.
Section 35-3-60. (1) A custodian is entitled to reimbursement from the
custodial property for his reasonable expenses incurred in the performance of
his duties.
(2) A custodian may act without compensation for his services.
(3) Unless he is a donor, a custodian may receive from the custodial
property reasonable compensation for his services determined by one of the
following standards in the order stated:
(a) A direction by the donor when the gift is made;
(b) A statute of this State applicable to custodians;
(c) The statute of this State applicable to guardians;
(d) An order of the court.
(4) Except as otherwise provided in this chapter, a custodian shall not be
required to give a bond for the performance of his duties.
(5) A custodian not compensated for his services is not liable for losses to
the custodial property unless they result from his bad faith, intentional
wrongdoing or gross negligence or from his failure to maintain the standard of
prudence in investing the custodial property provided in this chapter.
Section 35-3-70. No issuer, transfer agent, bank, life insurance company,
broker or other person or financial institution acting on the instructions of
or otherwise dealing with any person purporting to act as a donor or in the
capacity of a custodian is responsible for determining whether the person
designated as custodian by the purported donor or by the custodian or
purporting to act as a custodian has been duly designated or whether any
purchase, sale or transfer to or by or any other act of any person purporting
to act in the capacity of custodian is in accordance with or authorized by
this chapter, or is obliged to inquire into the validity or propriety under
this chapter of any instrument or instructions executed or given by a person
purporting to act as a donor or in the capacity of a custodian, or is bound to
see to the application by any person purporting to act in the capacity of a
custodian of any money or other property paid or delivered to him. No issuer,
transfer agent, bank, life insurance company, broker or other person or
financial institution acting on any instrument of designation of a successor
custodian, executed as provided in subsection (1) of Section 35-3-80 by a
minor to whom a gift has been made in a manner prescribed in this chapter and
who has attained the age of fourteen years, is responsible for determining
whether the person designated by the minor as successor custodian has been
duly designated, or is obliged to inquire into the validity or propriety under
this chapter of the instrument of designation.
Section 35-3-80. (1) Only an adult member of the minor's family, a guardian
of the minor or a trust company is eligible to become successor custodian. A
custodian may designate his successor by executing and dating an instrument of
designation before a subscribing witness other than the successor, the
instrument of designation may, but need not, contain the resignation of the
custodian. If the custodian does not so designate his successor before he dies
or becomes legally incapacitated, and the minor has attained the age of
fourteen years, the minor may designate a successor custodian by executing an
instrument of designation before a subscribing witness other than the
successor. A successor custodian has all the rights, powers, duties and
immunities of a custodian designated in a manner prescribed by this chapter.
(2) The designation of a successor custodian as provided in subsection (1)
takes effect as to each item of the custodial property when the custodian
resigns, dies or becomes legally incapacitated, and the custodian or his legal
representative:
(a) Causes the item, if it is a security in registered form, or a life
insurance policy or annuity contract, to be registered with the issuing
insurance company in the case of a life insurance policy or annuity contract,
or an interest in real property in the name of the successor custodian
followed in substance by the words: 'as custodian for ___________ under the
Uniform Gifts to Minors (name of minor)
Act';
(b) Delivers or causes to be delivered to the successor custodian any
other item of the custodial property, together with the instrument of
designation of the successor custodian or a true copy thereof and any
additional instruments required for the transfer thereof to the successor
custodian.
(3) A custodian who executes an instrument of designation of his successor
containing the custodian's resignation as provided in subsection (1) shall
promptly do all things within his power to put each item of the custodial
property in the possession and control of the successor custodian named in the
instrument. The legal representative of a custodian who dies or becomes
legally incapacitated shall promptly do all things within his power to put
each item of the custodial property in the possession and control of the
successor custodian named in an instrument of designation executed as provided
in subsection (1) by the custodian or, if none, by the minor if he has no
guardian and has attained the age of fourteen years, or in the possession and
control of the guardian of the minor if he has a guardian. If the custodian
has executed as provided in subsection (1) more than one instrument of
designation, his legal representative shall treat the instrument dated on an
earlier date as having been revoked by the instrument dated on a later date.
(4) If a person designated as custodian or as successor custodian by the
custodian as provided in subsection (1) is not eligible, dies or becomes
legally incapacitated before the minor attains the age of eighteen years and
if the minor has a guardian, the guardian of the minor shall be successor
custodian. If the minor has no guardian and if no successor custodian who is
eligible and has not died or become legally incapacitated has been designated
as provided in subsection (1), a donor, his legal representative, the legal
representative of the custodian or an adult member of the minor's family may
petition the court for the designation of a successor custodian. The
provisions of this subsection shall not affect the power of a personal
representative or trustee to appoint a custodian pursuant to items (g) and (h)
of subsection (1) of Section 35-3-30, or the power of an owner of a life
insurance policy or annuity contract to appoint a successor custodian pursuant
to subsection (4) of Section 35-3-30.
(5) A donor, the legal representative of a donor, a successor custodian, an
adult member of the minor's family, a guardian of the minor or the minor, if
he has attained the age of fourteen years, may petition the court that, for
cause show in the petition, the custodian be removed and a successor custodian
be designated or, in the alternative, that the custodian be required to give
bond for the performance of his duties.
(6) Upon the filing of a petition as provided in this section, the court
shall grant an order, directed to the persons and returnable on such notice as
the court may require, to show cause why the relief prayed for if the petition
should not be granted and, in due course, grant such relief as the court finds
to be in the best interests of the minor.
Section 35-3-90. (1) The minor, if he has attained the age of fourteen
years, or the legal representative of the minor, an adult member of the
minor's family or a donor or his legal representative may petition the court
for an accounting by the custodian or his legal representative.
(2) The court, in a proceeding under this chapter or otherwise, may require
or permit the custodian or his legal representative to account and, if the
custodian is removed, shall so require and order delivery of all custodial
property to the successor custodian and the execution of all instruments
required for the transfer thereof.
Section 35-3-100. (1) This chapter shall be so construed as to effectuate
its general purpose to make uniform the law of those states which enact it.
(2) This chapter shall not be construed as providing an exclusive method for
making gifts to minors.
Section 35-3-110. No amendment to this chapter shall be construed to
adversely affect any gift legally made under its provisions in effect prior to
the amendment."
Time Effective
Section 2. This act shall take effect upon approval by the Governor. |