H 3052 Session 111 (1995-1996)
H 3052 General Bill, By Kirsh, J.S. Shissias and Stille
Similar(S 137)
A Bill to amend Title 62, Code of Laws of South Carolina, 1976, relating to
the Probate Code, by adding Chapter 9 to enact the Uniform Custodial Trust Act
which provides for the creation of a statutory custodial trust for adults
whenever property is delivered to another as a custodial trustee under this
Act.
12/14/94 House Prefiled
12/14/94 House Referred to Committee on Judiciary
01/10/95 House Introduced and read first time HJ-21
01/10/95 House Referred to Committee on Judiciary HJ-21
A BILL
TO AMEND TITLE 62, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO THE PROBATE CODE, BY
ADDING CHAPTER 9 TO ENACT THE UNIFORM
CUSTODIAL TRUST ACT WHICH PROVIDES FOR THE
CREATION OF A STATUTORY CUSTODIAL TRUST FOR
ADULTS WHENEVER PROPERTY IS DELIVERED TO
ANOTHER AS A CUSTODIAL TRUSTEE UNDER THIS ACT.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Title 62 of the 1976 Code is amended by adding:
"CHAPTER 9
Uniform Custodial Trust Act
Section 62-9-5. This chapter may be cited as the `Uniform
Custodial Trust Act.'
Section 62-9-10. As used in this chapter:
(1) `Adult' means an individual who is at least eighteen years of
age.
(2) `Beneficiary' means an individual for whom property has
been transferred to or held under a declaration of trust by a
custodial trustee for the individual's use and benefit under this
chapter.
(3) `Conservator' means a person appointed or qualified by a
court to manage the estate of an individual or a person legally
authorized to perform substantially the same functions.
(4) `Court' means the probate courts of this State.
(5) `Custodial trust property' means an interest in property
transferred to or held under a declaration of trust by a custodial
trustee under this chapter and the income from and proceeds of that
interest.
(6) `Custodial trustee' means a person designated as trustee of a
custodial trust under this chapter or a substitute or successor to the
person designated.
(7) `Guardian' means a person appointed or qualified by a court
as a guardian of an individual, including a limited guardian, but not
a person who is only a guardian ad litem.
(8) `Incapacitated' means lacking the ability to manage property
and business affairs effectively by reason of mental illness, mental
deficiency, physical illness or disability, chronic use of drugs,
chronic intoxication, confinement, detention by a foreign power,
disappearance, minority, or other disabling cause.
(9) `Legal representative' means a personal representative or
conservator.
(10) `Member of the beneficiary's family' means a beneficiary's
spouse, descendent, stepchild, parent, stepparent, grandparent,
brother, sister, uncle, or aunt, whether of the whole or half blood or
by adoption.
(11) `Person' means an individual, corporation, business trust,
estate, trust, partnership, joint venture, association, or any other
legal or commercial entity.
(12) `Personal representative' means an executor, administrator,
or a special administrator of a decedent's estate, a person legally
authorized to perform substantially the same functions, or a
successor to any of them.
(13) `State' means a state, territory, or possession of the United
States, the District of Columbia, or the Commonwealth of Puerto
Rico.
(14) `Transferor' means a person who creates a custodial trust by
transfer or declaration.
(15) `Trust company' means a financial institution, corporation,
or other legal entity, authorized to exercise general trust powers.
Section 62-9-20. (A) A person may create a custodial trust of
property by a written transfer of the property to another person,
evidenced by registration or by other instrument of transfer,
executed in any lawful manner, naming as beneficiary, an individual
who may be the transferor, in which the transferee is designated, in
substance, as custodial trustee under the Uniform Custodial Trust
Act.
(B) A person may create a custodial trust of property by a
written declaration, evidenced by registration of the property or by
other instrument of declaration executed in any lawful manner,
describing the property and naming as beneficiary an individual
other than the declarant, in which the declarant as titleholder is
designated, in substance, as custodial trustee under the Uniform
Custodial Trust Act. A registration or other declaration of trust for
the sole benefit of the declarant is not a custodial trust under this
chapter.
(C) Title to custodial trust property is in the custodial trustee
and the beneficial interest is in the beneficiary.
(D) Except as provided in subsection (E), a transferor may not
terminate a custodial trust.
(E) The beneficiary, if not incapacitated, or the conservator of
an incapacitated beneficiary, may terminate a custodial trust by
delivering to the custodial trustee a writing signed by the
beneficiary or conservator declaring the termination. If not
previously terminated, the custodial trust terminates on the death of
the beneficiary.
(F) Any person may augment existing custodial trust property
by the addition of other property pursuant to this chapter.
(G) The transferor may designate, or authorize the designation
of, a successor custodial trustee in the trust instrument.
(H) This chapter does not displace or restrict other means of
creating trusts. A trust whose terms do not conform to this chapter
may be enforceable according to its terms under other law.
Section 62-9-30. (A) A person having the right to designate the
recipient of property payable or transferable upon a future event
may create a custodial trust upon the occurrence of the future event
by designating in writing the recipient, followed in substance by `as
custodial trustee for (name of beneficiary) under the
Uniform Custodial Trust Act'.
(B) Persons may be designated as substitute or successor
custodial trustees to whom the property must be paid or transferred
in the order named if the first designated trustee is unable or
unwilling to serve.
(C) A designation under this section may be made in a will, a
trust, a deed, a multi-party account, an insurance policy, an
instrument exercising a power of appointment, or a writing
designating a beneficiary of contractual rights. Otherwise, to be
effective, the designation must be registered with or delivered to the
fiduciary, payor, issuer, or obligor of the future right.
Section 62-9-40. (A) Obligations of a custodial trustee, including
the obligation to follow directions of the beneficiary, arise under
this chapter upon the custodial trustee's acceptance, express or
implied, of the custodial trust property.
(B) The custodial trustee's acceptance may be evidenced by a
writing stating in substance:
CUSTODIAL TRUSTEE'S RECEIPT AND
ACCEPTANCE
I, (name of custodial trustee), acknowledge receipt of the
custodial trust property described below or in the attached
instrument and accept the custodial trust as custodial trustee for
(name of beneficiary) under the Uniform Custodial Trust
Act. I undertake to administer and distribute the custodial trust
property pursuant to the Uniform Custodial Trust Act. My
obligations as custodial trustee are subject to the directions of the
beneficiary unless the beneficiary is designated as, is, or becomes
incapacitated. The custodial trust property consists of
(description of property).
Dated:
(Signature of Custodial Trustee)
(C) Upon accepting custodial trust property, a person designated
as custodial trustee under this chapter is subject to personal
jurisdiction of the court with respect to any matter relating to the
custodial trust.
Section 62-9-50. (A) Unless otherwise directed by an instrument
designating a custodial trustee pursuant to Section 62-9-30, a
person, including a fiduciary other than a custodial trustee, who
holds property of or owes a debt to an incapacitated individual not
having a conservator may make a transfer to an adult member of
the beneficiary's family or to a trust company as custodial trustee
for the use and benefit of the incapacitated individual. If the value
of the property or the debt exceeds twenty thousand dollars, the
transfer is not effective unless authorized by the court.
(B) A written acknowledgment of delivery, signed by a custodial
trustee, is a sufficient receipt and discharge for property transferred
to the custodial trustee pursuant to this section.
Section 62-9-60. (A) Beneficial interests in a custodial trust
created for multiple beneficiaries are deemed to be separate
custodial trusts of equal undivided interests for each beneficiary.
Except in a transfer or declaration for use and benefit of husband
and wife, for whom survivorship is presumed, a right of
survivorship does not exist unless the instrument creating the
custodial trust specifically provides for survivorship.
(B) Custodial trust property held under this chapter by the same
custodial trustee for the use and benefit of the same beneficiary may
be administered as a single custodial account.
(C) A custodial trustee of custodial trust property held for more
than one beneficiary shall separately account to each beneficiary
pursuant to Sections 62-9-70 and 62-9-150 for the administration of
the custodial trust.
Section 62-9-70. (A) If appropriate, a custodial trustee shall
register or record the instrument vesting title to custodial trust
property.
(B) If the beneficiary is not incapacitated, a custodial trustee
shall follow the directions of the beneficiary in the management,
control, investment, or retention of the custodial trust property. In
the absence of effective contrary direction by the beneficiary while
not incapacitated, the custodial trustee shall observe the standard of
care that would be observed by a prudent person dealing with
property of another and is not limited by any other law restricting
investments by fiduciaries. However, a custodial trustee, at the
custodial trustee's discretion, may retain any custodial trust property
received from the transferor. If a custodial trustee has a special skill
or expertise or is named custodial trustee on the basis of
representation of a special skill or expertise, the custodial trustee
shall use that skill or expertise.
(C) Subject to subsection (B), a custodial trustee shall take
control of and collect, hold, manage, invest, and reinvest custodial
trust property.
(D) A custodial trustee at all times shall keep custodial trust
property of which the custodial trustee has control, separate from all
other property in a manner sufficient to identify it clearly as
custodial trust property of the beneficiary. Custodial trust property,
the title to which is subject to recordation, is so identified if an
appropriate instrument so identifying the property is recorded, and
custodial trust property subject to registration is so identified if it is
registered, or held in an account in the name of the custodial
trustee, designated in substance: `as custodial trustee for (name
of beneficiary) under the Uniform Custodial Trust Act'.
(E) A custodial trustee shall keep records of all transactions with
respect to custodial trust property, including information necessary
for the preparation of tax returns, and shall make the records and
information available at reasonable times to the beneficiary or legal
representative of the beneficiary.
(F) The exercise of a durable power of attorney for an
incapacitated beneficiary is not effective to terminate or direct the
administration or distribution of a custodial trust.
Section 62-9-80. (A) A custodial trustee, acting in a fiduciary
capacity, has all the rights and powers over custodial trust property
which an unmarried adult owner has over individually owned
property, but a custodial trustee may exercise those rights and
powers in a fiduciary capacity only.
(B) This section does not relieve a custodial trustee from
liability for a violation of Section 62-9-70.
Section 62-9-90. (A) A custodial trustee shall pay to the
beneficiary or expend for the beneficiary's use and benefit so much
or all of the custodial trust property as the beneficiary while not
incapacitated may direct from time to time.
(B) If the beneficiary is incapacitated, the custodial trustee shall
expend so much or all of the custodial trust property as the
custodial trustee considers advisable for the use and benefit of the
beneficiary and individuals who were supported by the beneficiary
when the beneficiary becomes incapacitated, or who are entitled
legally to support by the beneficiary. Expenditures may be made in
the manner, when, and to the extent that the custodial trustee
determines suitable and proper, without court order and without
regard to other support, income, or property of the beneficiary.
(C) A custodial trustee may establish checking, savings, or other
similar accounts of reasonable amounts under which either the
custodial trustee or the beneficiary may withdraw funds from, or
draw checks against, the accounts. Funds withdrawn from, or
checks written against, the account by the beneficiary are
distributions of custodial trust property by the custodial trustee to
the beneficiary.
Section 62-9-100. (A) The custodial trustee shall administer the
custodial trust as for an incapacitated beneficiary if:
(1) the custodial trust was created under Section 62-9-50;
(2) the transferor has so directed in the instrument creating
the custodial trust; or
(3) the custodial trustee has determined that the beneficiary is
incapacitated.
(B) A custodial trustee may determine that the beneficiary is
incapacitated in reliance upon:
(1) previous direction or authority given by the beneficiary
while not incapacitated, including direction or authority pursuant to
a durable power of attorney;
(2) the certificate of the beneficiary's physician; or
(3) other persuasive evidence.
(C) If a custodial trustee for an incapacitated beneficiary
reasonably concludes that the beneficiary's incapacity has ceased, or
that circumstances concerning the beneficiary's ability to manage
property and business affairs have changed since the creation of a
custodial trust directing administration as for an incapacitated
beneficiary, the custodial trustee may administer the trust as for a
beneficiary who is not incapacitated.
(D) On petition of the beneficiary, the custodial trustee, or other
person interested in the custodial trust property or the welfare of the
beneficiary, the court shall determine whether the beneficiary is
incapacitated.
(E) Absent determination of incapacity of the beneficiary under
subsection (B) or (D), a custodial trustee who has reason to believe
that the beneficiary is incapacitated shall administer the custodial
trust in accordance with the provisions of this chapter applicable to
an incapacitated beneficiary.
(F) Incapacity of a beneficiary does not terminate
(1) the custodial trust;
(2) any designation of a successor custodial trustee;
(3) rights or powers of the custodial trustee; or
(4) any immunities of third persons acting on instructions of
the custodial trustee.
Section 62-9-110. A third person in good faith and without a
court order may act on instructions of, or otherwise deal with, a
person purporting to make a transfer as, or purporting to act in the
incapacity of, a custodial trustee. In the absence of knowledge to
the contrary, the third person is not responsible for determining the:
(1) validity of the purported custodial trustee's designation;
(2) propriety of, or the authority under this chapter for, any
action of the purported custodial trustee;
(3) validity or propriety of an instrument executed or instruction
given pursuant to this chapter either by the person purporting to
make a transfer or declaration or by the purported custodial trustee;
or
(4) propriety of the application of property vested in the
purported custodial trustee.
Section 62-9-120. (A) A claim based on a contract entered into
by a custodial trustee acting in a fiduciary capacity, an obligation
arising from the ownership or control of custodial trust property, or
a tort committed in the course of administering the custodial trust,
may be asserted by a third person against the custodial trust
property by proceeding against the custodial trustee in a fiduciary
capacity, whether or not the custodial trustee or the beneficiary is
personally liable.
(B) A custodial trustee personally is not liable to a third person:
(1) on a contract properly entered into in a fiduciary capacity
unless the custodial trustee fails to reveal that capacity or to identify
the custodial trust in the contract; or
(2) for an obligation arising from control of custodial trust
property or for a tort committed in the course of the administration
of the custodial trust unless the custodial trustee is personally at
fault.
(C) A beneficiary is not personally liable to a third person for an
obligation arising from beneficial ownership of custodial trust
property or for a tort committed in the course of administration of
the custodial trust unless the beneficiary is personally in possession
of the custodial trust property giving rise to the liability or is
personally at fault.
(D) Subsections (B) and (C) do not preclude actions or
proceedings to establish liability of the custodial trustee or
beneficiary to the extent the person sued is protected as the insured
by liability insurance.
Section 62-9-130. (A) Before accepting the custodial trust
property, a person designated as custodial trustee may decline to
serve by notifying the person who made the designation, the
transferor, or the transferor's legal representative. If an event giving
rise to a transfer has not occurred, the substitute custodial trustee
designated under Section 62-9-30 becomes the custodial trustee, or,
if a substitute custodial trustee has not been designated, the person
who made the designation may designate a substitute custodial
trustee pursuant to Section 62-9-30. In other cases, the transferor or
the transferor's legal representative may designate a substitute
custodial trustee.
(B) A custodial trustee who has accepted the custodial trust
property may resign by:
(1) delivering written notice to a successor custodial trustee,
if any, the beneficiary and, if the beneficiary is incapacitated, to the
beneficiary's conservator, if any, and
(2) transferring or registering, or recording an appropriate
instrument relating to, the custodial trust property, in the name of,
and delivering the records to, the successor custodial trustee
identified under subsection (C).
(C) If a custodial trustee or successor custodial trustee is
ineligible, resigns, dies, or becomes incapacitated, the successor
designated under Section 62-9-20(G) or Section 62-9-30 becomes
custodial trustee. If there is no effective provision for a successor,
the beneficiary, if not incapacitated, may designate a successor
custodial trustee. If the beneficiary is incapacitated or fails to act
within ninety days after the ineligibility, resignation, death, or
incapacity of the custodial trustee, the beneficiary's conservator
becomes successor custodial trustee. If the beneficiary does not
have a conservator or the conservator fails to act, the resigning
custodial trustee may designate a successor custodial trustee.
(D) If a successor custodial trustee is not designated pursuant to
subsection (C), the transferor, the legal representative of the
transferor or of the custodial trustee, an adult member of the
beneficiary's family, the guardian of the beneficiary, a person
interested in the custodial trust property, or a person interested in
the welfare of the beneficiary, may petition the court to designate a
successor custodial trustee.
(E) A custodial trustee who declines to serve or resigns, or the
legal representative of a deceased or incapacitated custodial trustee,
as soon as practicable, shall put the custodial trust property and
records in the possession and control of the successor custodial
trustee. The successor custodial trustee may enforce the obligation
to deliver custodial trust property and records and becomes
responsible for each item as received.
(F) A beneficiary, the beneficiary's conservator, an adult
member of the beneficiary's family, a guardian of the person of the
beneficiary, a person interested in the custodial trust property, or a
person interested in the welfare of the beneficiary, may petition the
court to remove the custodial trustee for cause and designate a
successor custodial trustee, to require the custodial trustee to furnish
a bond or other security for the faithful performance of fiduciary
duties, or other appropriated relief.
Section 62-9-140. Except as otherwise provided in the
instrument creating the custodial trust, in an agreement with the
beneficiary, or by court order, a custodial trustee:
(1) is entitled to reimbursement from custodial trust property for
reasonable expenses incurred in the performance of fiduciary
services;
(2) has a noncumulative election, to be made no later than six
months after the end of each calendar year, to charge a reasonable
compensation for fiduciary services performed during that year; and
(3) need not furnish a bond or other security for the faithful
performance of fiduciary duties.
Section 62-9-150. (A) Upon the acceptance of custodial trust
property, the custodial trustee shall provide a written statement
describing the custodial trust property and thereafter shall provide a
written statement of the administration of the custodial trust
property:
(1) once each year;
(2) upon request at reasonable times by the beneficiary or the
beneficiary's legal representative;
(3) upon resignation or removal of the custodial trustee; and
(4) upon termination of the custodial trust. The statements
must be provided to the beneficiary or to the beneficiary's legal
representative, if any. Upon termination of the beneficiary's interest,
the custodial trustee shall furnish a current statement to the person
to whom the custodial trust property is to be delivered.
(B) A beneficiary, the beneficiary's legal representative, an adult
member of the beneficiary's family, a person interested in the
custodial trust property, or a person interested in the welfare of the
beneficiary may petition the court for an accounting by the
custodial trustee or the custodial trustee's legal representative.
(C) A successor custodial trustee may petition the court for an
accounting by a predecessor custodial trustee.
(D) In an action or proceeding under this chapter or in any other
proceeding, the court may require or permit the custodial trustee or
the custodial trustee's legal representative to account. The custodial
trustee or the custodial trustee's legal representative may petition
the court for approval of final accounts.
(E) If a custodial trustee is removed, the court shall require an
accounting and order delivery of the custodial trust property and
records to the successor custodial trustee and the execution of all
instruments required for the transfer of the custodial trust property.
(F) On petition of the custodial trustee or any person who could
petition for an accounting, the court, after notice to interested
persons, may issue instructions to the custodial trustee or review the
propriety of the acts of a custodial trustee or the reasonableness of
compensation determined by the custodial trustee for the services of
the custodial trustee or others.
Section 62-9-160. (A) Except as provided in subsection (C),
unless previously barred by adjudication, consent, or limitation, a
claim for relief against a custodial trustee for accounting or breach
of duty is barred as to a beneficiary, a person to whom custodial
trust property is to be paid or delivered, or the legal representative
of an incapacitated or deceased beneficiary or payee:
(1) who has received a final account or statement fully
disclosing the matter unless an action or proceeding to assert the
claim is commenced within two years after the receipt of the final
account or statement; or
(2) who has not received a final account or statement fully
disclosing the matter unless an action or proceeding to assert the
claim is commenced within three years after the termination of the
custodial trust.
(B) Except as provided in subsection (C), a claim for relief to
recover from a custodial trustee for fraud, misrepresentation, or
concealment related to the final settlement of the custodial trust or
concealment of the existence of the custodial trust, is barred unless
an action or proceeding to assert the claim is commenced within
five years after the termination of the custodial trust.
(C) A claim for relief is not barred by this section if the
claimant:
(1) is a minor, until the earlier of two years after the claimant
becomes an adult or dies;
(2) is an incapacitated adult, until the earliest of two years
after:
(a) the appointment of a conservator;
(b) the removal of the incapacity; or
(c) the death of the claimant; or
(3) was an adult, now deceased, who was not incapacitated,
until two years after the claimant's death.
Section 62-9-170. (A) Upon termination of a custodial trust,
the custodial trustee shall transfer the unexpended custodial trust
property:
(1) to the beneficiary, if not incapacitated or deceased;
(2) to the conservator or other recipient designated by the
court for an incapacitated beneficiary; or
(3) upon the beneficiary's death, in the following order:
(a) as last directed in a 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 Section 62-9-60;
(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 a 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.
Section 62-9-180. (A) If a transaction, including a declaration
with respect to or a transfer of specific property, otherwise satisfies
applicable law, the criteria of Section 62-9-20 are satisfied by:
(1) the execution and either delivery to the custodial trustee
or recording of an instrument in substantially the following form:
TRANSFER UNDER THE
UNIFORM CUSTODIAL TRUST ACT
I, (name of transferor or name and representative capacity if
a fiduciary), transfer to (name of trustee other than
transferor), as custodial trustee for (name of
beneficiary) as beneficiary and as distributee on termination of
the trust in absence of direction by the beneficiary under the
Uniform Custodial Trust Act, the following: (insert a
description of the custodial trust property legally sufficient to
identify and transfer each item of property).
Dated:
(Signature);
or
(2) the execution and the recording or giving notice of its
execution to the beneficiary of an instrument in substantially the
following form:
DECLARATION OF TRUST UNDER THE
UNIFORM CUSTODIAL TRUST ACT
I, (name of owner of property), declare that henceforth I
hold as custodial trustee for (name of beneficiary other than
transferor) as beneficiary and as distributee on termination of
the trust in absence of direction by the beneficiary under the
Uniform Custodial Trust Act, the following: (Insert a
description of the custodial trust property legally sufficient to
identify and transfer each item of property).
Dated:
(Signature)
(B) Customary methods of transferring or evidencing ownership
of property may be used to create a custodial trust, including any
of the following:
(1) registration of a security in the name of a trust company,
an adult other than the transferor, or the transferor if the beneficiary
if other than the transferor, designated in substance `as custodial
trustee for (name of beneficiary) under the Uniform
Custodial Trust Act'; (2) delivery of a certificated security,
or a document necessary for the transfer of an uncertificated
security, together with any necessary endorsement, to an adult other
than the transferor or to a trust company as custodial trustee,
accompanied by an instrument in substantially the form prescribed
in subsection (A)(1);
(3) payment of money or transfer of a security held in the
name of a broker or a financial institution or its nominee to a
broker or financial institution for credit to an account in the name
of a trust company, an adult other than the transferor, or the
transferor if the beneficiary is other than the transferor, designated
in substance: `as custodial trustee for (name of beneficiary)
under the Uniform Custodial Trust Act';
(4) registration of ownership of a life or endowment
insurance policy or annuity contract with the issuer in the name of a
trust company, an adult other than the transferor, or the transferor if
the beneficiary is other than the transferor, designated substance: `as
custodial trustee for (name of beneficiary) under the
Uniform Custodial Trust Act';
(5) delivery of a written assignment to an adult other than the
transferor or to a trust company whose name in the assignment is
designed in substance by the words: `as custodial trustee for
(name of beneficiary) under the Uniform Custodial Trust
Act';
(6) irrevocable exercise of a power of appointment, pursuant
to its terms, in favor of a trust company, an adult other than the
donee of the power, or the donee who holds the power if the
beneficiary is other than the donee, whose name in the appointment
is designated in substance: `as custodial trustee for (name of
beneficiary) under the Uniform Custodial Trust Act';
(7) delivery of a written notification or assignment of a right
to future payment under a contract to an obligor which transfers the
right under the contract to a trust company, an adult other than the
transferor, or the transferor if the beneficiary is other than the
transferor, whose name in the notification or assignment is
designated in substance: `as custodial trustee for (name of
beneficiary) under the Uniform Custodial Trust Act';
(8) execution, delivery, and recordation of a conveyance of
an interest in real property in the name of a trust company, an adult
other than the transferor, or the transferor if the beneficiary is other
than the transferor, designated in substance: `as custodial trustee for
(name of beneficiary) under the Uniform Custodial Trust
Act';
(9) issuance of a certificate of title by an agency of a state or
of the United States which evidences title to tangible personal
property:
(a) issued in the name of a trust company, an adult other
the transferor, or the transferor if the beneficiary is other than the
transferor, designated in substance: `as custodial trustee for
(name of beneficiary) under the Uniform Custodial Trust
Act'; or
(b) delivered to a trust company or an adult other than the
transferor or endorsed by the transferor to that person, designated in
substance: `as custodial trustee for (name of beneficiary)
under the Uniform Custodial Trust Act'.
(10) execution and delivery of an instrument of gift to a trust
company or an adult other than the transferor, designated in
substance: `as custodial trustee for (name of beneficiary)
under the Uniform Custodial Trust Act'.
Section 62-9-190. (A) This chapter applies to a transfer or
declaration creating a custodial trust that refers to this chapter if, at
the time of the transfer or declaration, the transferor, beneficiary, or
custodial trustee is a resident of or has its principal place of
business in this state or custodial trust property is located in this
state. The custodial trust remains subject to this chapter despite a
later change in residence or principal place of business of the
transferor, beneficiary, or custodial trustee, or removal of the
custodial trust property from this State.
(B) A transfer made pursuant to an act of another state
substantially similar to this chapter is governed by the law of that
state and may be enforced in this State.
Section 62-9-200. This chapter shall be applied and construed to
effectuate its general purpose to make the law uniform with respect
to its subject among states enacting it.
Section 62-9-210. 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, and to this end the provisions of this chapter are
severable."
SECTION 2. This act takes effect upon approval by the
Governor.
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