§ 527.29 — Manner of Creating Custodial Property and Effecting Transfer; Designation of Initial Custodian; Control
Plain-Language Summary
This section explains exactly how to create custodial property and complete a transfer for different types of property, including stocks, money, insurance policies, real estate, and other assets. Each type of property requires specific steps, but all require using the phrase 'as custodian for (minor's name) under the Minnesota Uniform Transfers to Minors Act.' A sample transfer form is provided.
527.29 MANNER OF CREATING CUSTODIAL PROPERTY AND EFFECTING TRANSFER; DESIGNATION OF INITIAL CUSTODIAN; CONTROL.
(a) Custodial property is created and a transfer is made whenever:
(1) an uncertificated security or a certificated security in registered form is either:
(i) registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: “as custodian for ………… (name of minor) under the Minnesota Uniform Transfers to Minors Act”; or
(ii) delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in paragraph (b);
(2) money is paid or delivered, or a security held in the name of a broker, financial institution, or its nominee is transferred, to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: “as custodian for ………… (name of minor) under the Minnesota Uniform Transfers to Minors Act”;
(3) the ownership of a life or endowment insurance policy or annuity contract is either:
(i) registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: “as custodian for ………… (name of minor) under the Minnesota Uniform Transfers to Minors Act”; or
(ii) assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: “as custodian for ………… (name of minor) under the Minnesota Uniform Transfers to Minors Act”;
(4) an irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer, or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company, whose name in the notification is followed in substance by the words: “as custodian for ………… (name of minor) under the Minnesota Uniform Transfers to Minors Act”;
(5) an interest in real property is recorded in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: “as custodian for ………….. (name of minor) under the Minnesota Uniform Transfers to Minors Act”;
(6) a certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is either:
(i) issued in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: “as custodian for ………… (name of minor) under the Minnesota Uniform Transfers to Minors Act”; or
(ii) delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words: “as custodian for ………… (name of minor) under the Minnesota Uniform Transfers to Minors Act”; or
(7) an interest in any property not described in clauses (1) to (6) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in paragraph (b).
(b) An instrument in the following form satisfies the requirements of paragraph (a), clauses (1)(ii) and (7):
“TRANSFER UNDER THE MINNESOTA UNIFORM
TRANSFERS TO MINORS ACT
I, …………………. (name of transferor or name and representative capacity if a fiduciary) hereby transfer to …………………… (name of custodian), as custodian for ………………….. (name of minor) under the Minnesota Uniform Transfers to Minors Act, the following: (insert a description of the custodial property sufficient to identify it).
Dated: .
.
(Signature)
…………………… (name of custodian) acknowledges receipt of the property described above as custodian for the minor named above under the Minnesota Uniform Transfers to Minors Act.
Dated: .
.
(Signature of Custodian)”
(c) A transferor shall place the custodian in control of the custodial property as soon as practicable.
History:
1985 c 221 s 9; 1987 c 142 s 1
History: History: 1985 c 221 s 9; 1987 c 142 s 1