Use of custodial property; transfer of property to trust
Sec. 29. (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 or ability of the custodian personally or of any
other person to support the minor; or
(2) any other income or property of the minor that may be
applicable or available for the support of the minor.
(b) At any time and without a court order, a custodian may
transfer part or all of the custodial property to a trust, including a
trust created by the custodian, in which:
(1) the minor is the sole beneficiary of the trust; and
(2) the terms of the trust satisfy the requirements of Section
2503 of the Internal Revenue Code and the regulations under
that section.
The transfer terminates the custodianship of the property to the
extent of the transfer.
(c) On petition of an interested person or the minor if the minor
is at least fourteen (14) years of age, the court may order the
custodian to deliver or pay to the minor or expend for the minor's
benefit as much of the custodial property as the court considers
advisable for the use and benefit of the minor.
(d) A delivery, payment, or expenditure under this section is in
addition to, not in substitution for, and does not affect an obligation
of a person to support the minor.
As added by P.L.267-1989, SEC.2. Amended by P.L.238-2005,
SEC.17.
Last modified: May 27, 2006