North Carolina General Statutes 33B-18. Methods and forms of creating custodial trusts
(a) If a transaction (including a declaration with respect to or a transfer of specific property) otherwise satisfies applicable law, the criteria of N.C. Gen. Stat. § 33B-2 are satisfied by:
(1) The execution and either delivery to the custodial trustee or recording of an instrument in substantially the following form:
“TRANSFER UNDER THE NORTH CAROLINA
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 North Carolina 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: ______________
______________ (Seal) ___________ (Witness)
Signature
___________ (Witness)
STATE OF ______ COUNTY OF ______
On this ______ day of_____, ____, personally appeared before me, the said named ______ to me known and known to me to be the person described in and who executed the foregoing instrument and he (or she) acknowledged that he (or she) executed the same and being duly sworn by me, made oath that the statements in the foregoing instrument are true.
My Commission Expires ________
________________
(Signature of Notary Public)
Notary Public (Official Seal)”;
or
Terms Used In North Carolina General Statutes 33B-18
- 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: 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.
- Donee: The recipient of a gift.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- oath: shall be construed to include "affirmation" in all cases where by law an affirmation may be substituted for an oath, and in like cases the word "sworn" shall be construed to include the word "affirmed. See North Carolina General Statutes 12-3
- Oath: A promise to tell the truth.
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
- Trustee: A person or institution holding and administering property in trust.
- United States: shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
(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 NORTH CAROLINA
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 North Carolina 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: ____________
______________ (Seal) ___________ (Witness)
Signature
___________ (Witness)
STATE OF ______ COUNTY OF ______
On this ______ day of_____, ____, personally appeared before me, the said named ______ to me known and known to me to be the person described in and who executed the foregoing instrument and he (or she) acknowledged that he (or she) executed the same and being duly sworn by me, made oath that the statements in the foregoing instrument are true.
My Commission Expires ________
________________
(Signature of Notary Public)
Notary Public (Official Seal)”
(b) Any customary methods of transferring or evidencing ownership of property may be used to create a custodial trust, including, but not limited to, any of the following:
(1) Registration of a security in the name of a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, designated in substance “as custodial trustee for ____________ (name of beneficiary) under the North Carolina Uniform Custodial Trust Act”;
(2) Delivery of a certificated security, or a document necessary for the transfer of an uncertificated security, together with 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 trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, designated in substance “as custodial trustee for _____________ (name of beneficiary) under the North Carolina 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 trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, designated in substance “as custodial trustee for ______________ (name of beneficiary) under the North Carolina Uniform Custodial Trust Act”;
(5) Delivery of a written assignment to an adult other than the transferor or to a trust company designated in the assignment in substance by the words “as custodial trustee for __________ (name of beneficiary) under the North Carolina Uniform Custodial Trust Act”;
(6) Irrevocable exercise of a power of appointment, pursuant to its terms, in favor of a trust company, an adult other than the donee of the power, or the donee who holds the power if the beneficiary is other than the donee, designated in the appointment in substance “as custodial trustee for __________ (name of beneficiary) under the North Carolina Uniform Custodial Trust Act”;
(7) Delivery of a written notification or assignment of a right to future payment under a contract to an obligor which transfers the right under the contract to a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, designated in the notification or assignment in substance “as custodial trustee for ____________ (name of beneficiary) under the North Carolina Uniform Custodial Trust Act”;
(8) Execution and delivery of a conveyance of an interest in real property in the name of a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, designated in substance “as custodial trustee for ____________ (name of beneficiary) under the North Carolina Uniform Custodial Trust Act”;
(9) Issuance of a certificate of title by an agency of a state or of the United States which evidences title to tangible personal property:
a. Issued in the name of a trust company, an adult other than the transferor, or the transferor if the beneficiary is other than the transferor, designated in substance “as custodial trustee for __________ (name of beneficiary) under the North Carolina Uniform Custodial Trust Act”; or
b. Delivered to a trust company or 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 North Carolina Uniform Custodial Trust Act”; or
(10) Execution and delivery of an instrument of gift to a trust company or an adult other than the transferor, designated in substance “as custodial trustee for _______________ (name of beneficiary) under the North Carolina Uniform Custodial Trust Act”. (1995, c. 486, s. 1.)