Distribution of custodial trust property
Sec. 29. (a) If a beneficiary is not incapacitated, the custodial
trustee shall:
(1) pay to the beneficiary; or
(2) expend for the beneficiary's use and benefit;
so much or all of the custodial trust property as the beneficiary may
direct from time to time.
(b) If the beneficiary is incapacitated, the custodial trustee, in the
custodial trustee's sole discretion, may expend so much or all of the
custodial trust property as the custodial trustee considers advisable
for the use and benefit of:
(1) the beneficiary; and
(2) individuals who:
(A) were supported by the beneficiary when the beneficiary
became incapacitated; or
(B) are legally entitled to support by the beneficiary.
(c) The custodial trustee may make expenditures:
(1) in the manner;
(2) when; and
(3) to the extent;
that the custodial trustee determines suitable and proper. The
custodial trustee may make expenditures without court order and
without regard to other support, income, or property of the
beneficiary.
(d) A custodial trustee may establish checking, savings, or other
similar accounts of reasonable amounts under which:
(1) the custodial trustee; or
(2) 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Funds withdrawn from, or checks written against, the account by the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.
As added by P.L.3-2003, SEC.1.
Last modified: May 27, 2006