(a)  Unless otherwise directed by an instrument designating a custodial trustee pursuant to § 18-13-3, a person, including a fiduciary other than a custodial trustee, who holds property of or owes a debt to an incapacitated individual not having a conservator, may make a transfer to an adult member of the beneficiary‘s family or to a trust company as custodial trustee for the use and benefit of the incapacitated individual. If the value of the property or the debt exceeds twenty thousand dollars ($20,000), the transfer is not effective unless authorized by the court.

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Terms Used In Rhode Island General Laws 18-13-5

  • Adult: means an individual who is at least eighteen (18) years of age. See Rhode Island General Laws 18-13-1
  • Conservator: means a person appointed or qualified by a court to manage the estate of an individual or a person legally authorized to perform substantially the same functions. See Rhode Island General Laws 18-13-1
  • Court: means the probate courts of this state. See Rhode Island General Laws 18-13-1
  • Custodial trustee: means a person designated as trustee of a custodial trust under this chapter or a substitute or successor to the designated person. See Rhode Island General Laws 18-13-1
  • Fiduciary: A trustee, executor, or administrator.
  • Incapacitated: means lacking the ability to manage property and business affairs effectively by reason of mental illness, mental deficiency, physical illness or disability, chronic use of drugs, chronic intoxication, confinement, detention by a foreign power, disappearance, minority, or other disabling cause. See Rhode Island General Laws 18-13-1
  • Person: means an individual, corporation, business trust, estate, trust, partnership, joint venture, association, or any other legal or commercial entity. See Rhode Island General Laws 18-13-1
  • Trust company: means a financial institution, corporation, or other legal entity, authorized to exercise general trust powers. See Rhode Island General Laws 18-13-1
  • Trustee: A person or institution holding and administering property in trust.

(b)  A written acknowledgment of delivery, signed by a custodial trustee, is a sufficient receipt and discharge for property transferred to the custodial trustee pursuant to this section.

History of Section.
P.L. 1988, ch. 623, § 1.