(a) Custodial property is created and a transfer is made whenever:

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Terms Used In Tennessee Code 35-7-110

  • Adult: means an individual who has attained twenty-one (21) years of age. See Tennessee Code 35-7-102
  • 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.
  • Broker: means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others. See Tennessee Code 35-7-102
  • Contract: A legal written agreement that becomes binding when signed.
  • Custodial property: means :
    (A) Any interest in property transferred to a custodian under this chapter. See Tennessee Code 35-7-102
  • Custodian: means a person so designated, including a person designated as a joint custodian pursuant to §. See Tennessee Code 35-7-102
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Financial institution: means a bank, trust company, savings institution, or credit union, chartered and supervised under state or federal law. See Tennessee Code 35-7-102
  • Minor: means an individual who has not attained twenty-one (21) years of age, although the minor may already be of legal age. See Tennessee Code 35-7-102
  • Person: means an individual, corporation, organization, or other legal entity. See Tennessee Code 35-7-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • State: includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States. See Tennessee Code 35-7-102
  • Transfer: means a transaction that creates custodial property under this chapter. See Tennessee Code 35-7-102
  • Transferor: means a person who makes a transfer under this chapter. See Tennessee Code 35-7-102
  • Trust company: means a financial institution, corporation, or other legal entity, authorized to exercise general trust powers. See Tennessee Code 35-7-102
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(1) An uncertificated security or a certificated security in registered form is either:

(A) 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 Tennessee Uniform Transfers to Minors Act”; or
(B) 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 subsection (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 Tennessee Uniform Transfers to Minors Act”;
(3) The ownership of a life or endowment insurance policy or annuity contract is either:

(A) 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 Tennessee Uniform Transfers to Minors Act”; or
(B) 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 Tennessee 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 Tennessee Uniform Transfers to Minors Act”;
(5) A deed for 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 Tennessee 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:

(A) 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 Tennessee Uniform Transfers to Minors Act”; or
(B) 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 Tennessee Uniform Transfers to Minors Act”; or
(7) An interest in any property not described in subdivisions (a)(1)-(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 subsection (b).
(b) An instrument in the following form satisfies the requirements of subdivisions (a)(1)(B) and (7):

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(c) As an alternative to the form of transfer set out in subdivisions (a)(1)-(6), custodial property may be registered, held, recorded or otherwise created in the name of the minor, followed in substance by the words “minor, by ______________ (name of custodian or custodians) under the Tennessee Uniform Transfers to Minors Act”.
(d) A transferor shall place the custodian in control of the custodial property as soon as practicable.
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