Indiana Code 30-2-8.6-38. Creating a custodial trust
(1) The execution and either delivery to the custodial trustee or recording of an instrument in substantially the following form:
Terms Used In Indiana Code 30-2-8.6-38
- adult: means an individual who is at least eighteen (18) years of age. See Indiana Code 30-2-8.6-5
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- beneficiary: means an individual for whom property:
Indiana Code 30-2-8.6-6
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- custodial trust property: means the following:
Indiana Code 30-2-8.6-7
- custodial trustee: means a person designated as:
Indiana Code 30-2-8.6-8
- Donee: The recipient of a gift.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- person: means an individual, corporation, business trust, estate, trust, partnership, joint venture, association, or any other legal or commercial entity. See Indiana Code 30-2-8.6-13
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- state: means a state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico. See Indiana Code 30-2-8.6-15
- transferor: means a person who creates a custodial trust by transfer or declaration. See Indiana Code 30-2-8.6-16
- trust company: means a financial institution, corporation, or other legal entity authorized to exercise general trust powers. See Indiana Code 30-2-8.6-17
- Trustee: A person or institution holding and administering property in trust.
- United States: includes the District of Columbia and the commonwealths, possessions, states in free association with the United States, and the territories. See Indiana Code 1-1-4-5
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.