Creating a custodial trust
Sec. 38. (a) If a transaction, including a declaration with respect
to or a transfer of specific property, otherwise satisfies applicable
law, the criteria of section 18 of this chapter are satisfied by either of
the following:
(1) The execution and either delivery to the custodial trustee or
recording of an instrument in substantially the following form:
TRANSFER UNDER THE
INDIANA 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 Indiana 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)
(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
INDIANA 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 Indiana 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) a trust company;
(B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than the
transferor;
designated in substance "as custodial trustee for
_______________ (name of beneficiary) under the Indiana
uniform custodial trust act".
(2) Delivery of:
(A) a certificated security, or a document necessary for the
transfer of an uncertificated security; and
(B) 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) a trust company;
(B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than the
transferor;
designated in substance: "as custodial trustee for
_______________ (name of beneficiary) under the Indiana
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) a trust company;
(B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than the
transferor;
designated in substance: "as custodial trustee for
_______________ (name of beneficiary) under the Indiana
uniform custodial trust act".
(5) Delivery of a written assignment to:
(A) an adult other than the transferor; or
(B) a trust company;
whose name in the assignment is designated in substance by the
words: "as custodial trustee for _______________ (name of
beneficiary) under the Indiana uniform custodial trust act".
(6) Irrevocable exercise of a power of appointment, pursuant to
its terms, in favor of:
(A) a trust company;
(B) an adult other than the donee of the power; or
(C) 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 Indiana uniform custodial trust act".
(7) Delivery of a written notification or assignment of a right to
future payment under a contract to an obligor that transfers the
right under the contract to:
(A) a trust company;
(B) an adult other than the transferor; or
(C) 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 Indiana uniform custodial trust act".
(8) Execution, delivery, and recordation of a conveyance of an
interest in real property in the name of:
(A) a trust company;
(B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than the
transferor;
designated in substance: "as custodial trustee for
_______________ (name of beneficiary) under the Indiana
uniform custodial trust act".
(9) Issuance of a certificate of title by an agency of a state or of
the United States that evidences title to tangible personal
property:
(A) issued in the name of:
(i) a trust company;
(ii) an adult other than the transferor; or
(iii) the transferor if the beneficiary is other than the
transferor;
designated in substance: "as custodial trustee for
_______________ (name of beneficiary) under the Indiana
uniform custodial trust act"; or
(B) delivered to:
(i) a trust company; or
(ii) 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 Indiana
uniform custodial trust act".
(10) Execution and delivery of an instrument of gift to:
(A) a trust company; or
(B) an adult other than the transferor;
designated in substance: "as custodial trustee for
_______________ (name of beneficiary) under the Indiana
uniform custodial trust act".
As added by P.L.3-2003, SEC.1. Amended by P.L.97-2004, SEC.103.
Last modified: May 27, 2006