14-9117. Distribution on termination


A. On the termination of a custodial trust, the custodial trustee shall transfer
the unexpended custodial trust property:


1. To the beneficiary, if not incapacitated or deceased.


2. To the conservator or other recipient designated by the court for an
incapacitated beneficiary.


3. On the beneficiary's death, in the following order:


(a) As last directed in a writing signed by the deceased beneficiary while not
incapacitated and received by the custodial trustee during the life of the deceased
beneficiary.


(b) To the survivor of multiple beneficiaries if survivorship is provided for
pursuant to Section 14-9106.


(c) As designated in the instrument creating the custodial trust.


(d) To the estate of the deceased beneficiary.


B. If, when the custodial trust would otherwise terminate, the distributee is
incapacitated, the custodial trust continues for the use and benefit of the distributee
as beneficiary until the incapacity is removed or the custodial trust is otherwise
terminated.


C. The death of a beneficiary does not terminate the power of the custodial trustee
to discharge obligations of the custodial trustee or beneficiary incurred before the
termination of the custodial trust.