State Codes and Statutes

Statutes > California > Prob > 3900-3925

PROBATE CODE
SECTION 3900-3925



3900.  This part may be cited as the "California Uniform Transfers
to Minors Act."



3901.  In this part:
   (a) "Adult" means an individual who has attained the age of 18
years.
   (b) "Benefit plan" means an employer's plan for the benefit of an
employee or partner.
   (c) "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.
   (d) "Conservator" means a person appointed or qualified by a court
to act as general, limited, or temporary guardian of a minor's
property or a person legally authorized to perform substantially the
same functions.
   (e) "Court" means the superior court.
   (f) "Custodial property" means (1) any interest in property
transferred to a custodian under this part and (2) the income from
and proceeds of that interest in property.
   (g) "Custodian" means a person so designated under Section 3909 or
a successor or substitute custodian designated under Section 3918.
   (h) "Financial institution" means a bank, trust company, savings
institution, or credit union, chartered and supervised under state or
federal law or an industrial loan company licensed and supervised
under the laws of this state.
   (i) "Legal representative" means an individual's personal
representative or conservator.
   (j) "Member of the minor's family" means the minor's parent,
stepparent, spouse, grandparent, brother, sister, uncle, or aunt,
whether of the whole or half blood or by adoption.
   (k) "Minor" means:
   (1) Except as provided in paragraph (2), an individual who has not
attained the age of 18 years.
   (2) When used with reference to the beneficiary for whose benefit
custodial property is held or is to be held, an individual who has
not attained the age at which the custodian is required under
Sections 3920 and 3920.5 to transfer the custodial property to the
beneficiary.
   (l) "Person" means an individual, corporation, organization, or
other legal entity.
   (m) "Personal representative" means an executor, administrator,
successor personal representative, or special administrator of a
decedent's estate or a person legally authorized to perform
substantially the same functions.
   (n) "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.
   (o) "Transfer" means a transaction that creates custodial property
under Section 3909.
   (p) "Transferor" means a person who makes a transfer under this
part.
   (q) "Trust company" means a financial institution, corporation, or
other legal entity, authorized to exercise general trust powers.




3902.  (a) This part applies to a transfer that refers to this part
in the designation under subdivision (a) of Section 3909 by which the
transfer is made if at the time of the transfer, the transferor, the
minor, or the custodian is a resident of this state or the custodial
property is located in this state. The custodianship so created
remains subject to this part despite a subsequent change in residence
of a transferor, the minor, or the custodian, or the removal of
custodial property from this state.
   (b) A person designated as custodian under this part is subject to
personal jurisdiction in this state with respect to any matter
relating to the custodianship.
   (c) A transfer that purports to be made and which is valid under
the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act,
or a substantially similar act, of another state is governed by the
law of the designated state and may be executed and is enforceable in
this state if at the time of the transfer, the transferor, the
minor, or the custodian is a resident of the designated state or the
custodial property is located in the designated state.



3903.  (a) A person having the right to designate the recipient of
property transferable upon the occurrence of a future event may
revocably nominate a custodian to receive the property for a minor
beneficiary upon the occurrence of the event by naming the custodian
followed in substance by the words:
"as custodian for _______________
          (Name of Minor)
under the California Uniform Transfers to Minors Act."
The nomination may name one or more persons as substitute custodians
to whom the property must be transferred, in the order named, if the
first nominated custodian dies before the transfer or is unable,
declines, or is ineligible to serve. The nomination may be made in a
will, a trust, a deed, an instrument exercising a power of
appointment, or in a writing designating a beneficiary of contractual
rights which is registered with or delivered to the payor, issuer,
or other obligor of the contractual rights.
   (b) A custodian nominated under this section must be a person to
whom a transfer of property of that kind may be made under
subdivision (a) of Section 3909.
   (c) The nomination of a custodian under this section does not
create custodial property until the nominating instrument becomes
irrevocable or a transfer to the nominated custodian is completed
under Section 3909. Unless the nomination of a custodian has been
revoked, upon the occurrence of the future event, the custodianship
becomes effective, and the custodian shall enforce a transfer of the
custodial property pursuant to Section 3909.



3904.  A person may make a transfer by irrevocable gift to, or the
irrevocable exercise of a power of appointment in favor of, a
custodian for the benefit of a minor pursuant to Section 3909.



3905.  (a) A personal representative or trustee may make an
irrevocable transfer pursuant to Section 3909 to a custodian for the
benefit of a minor as authorized in the governing will or trust.
   (b) If the testator or settlor has nominated a custodian under
Section 3903 to receive the custodial property, the transfer shall be
made to that person.
   (c) If the testator or settlor has not nominated a custodian under
Section 3903, or all persons so nominated as custodian die before
the transfer or are unable, decline, or are ineligible to serve, the
personal representative or the trustee, as the case may be, shall
designate the custodian from among those eligible to serve as
custodian for property of that kind under subdivision (a) of Section
3909.


3906.  (a) Subject to subdivision (c), a personal representative or
trustee may make an irrevocable transfer to another adult or trust
company as custodian for the benefit of a minor pursuant to Section
3909, in the absence of a will or under a will or trust that does not
contain an authorization to do so.
   (b) Subject to subdivision (c), a conservator may make an
irrevocable transfer to another adult or trust company as custodian
for the benefit of the minor pursuant to Section 3909.
   (c) A transfer under subdivision (a) or (b) may be made only if
all of the following requirements are satisfied:
   (1) The personal representative, trustee, or conservator considers
the transfer to be in the best interest of the minor.
   (2) The transfer is not prohibited by or inconsistent with
provisions of the applicable will, trust agreement, or other
governing instrument. For the purposes of this subdivision, a
spendthrift provision (such as that described in Section 15300) shall
not prohibit or be inconsistent with the transfer.
   (3) The transfer is authorized by the court if it exceeds ten
thousand dollars ($10,000) in value; provided, however, that such
court authorization shall not be required when the transfer is to a
custodian who is either (A) a trust company or (B) an individual
designated as a trustee by the terms of a trust instrument which does
not require a bond.



3907.  (a) Subject to subdivisions (b) and (c), a person not subject
to Section 3905 or 3906 who holds property of, or owes a liquidated
debt to, a minor not having a conservator may make an irrevocable
transfer to a custodian for the benefit of the minor pursuant to
Section 3909.
   (b) If a person having the right to do so under Section 3903 has
nominated a custodian under that section to receive the custodial
property, the transfer shall be made to that person.
   (c) If no custodian has been nominated under Section 3903, or all
persons so nominated as custodian die before the transfer or are
unable, decline, or are ineligible to serve, a transfer under this
section may be made to an adult member of the minor's family or to a
trust company unless the property exceeds ten thousand dollars
($10,000) in value.



3908.  A written acknowledgment of delivery by a custodian
constitutes a sufficient receipt and discharge for custodial property
transferred to the custodian pursuant to this part.



3909.  (a) Custodial property is created and a transfer is made
whenever any of the following occurs:
   (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 California Uniform Transfers to Minors Act."
   (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 subdivision (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 California 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 California Uniform Transfers to Minors Act."
   (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 California 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 California Uniform Transfers to Minors Act."
   (5) 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 California 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 California Uniform Transfers to Minors Act."
   (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 California Uniform Transfers to Minors Act."
   (7) An interest in any property not described in paragraphs (1)
through (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 subdivision (b).
   (b) An instrument in the following form satisfies the requirements
of subparagraph (B) of paragraph (1) and paragraph (7) of
subdivision (a):


          "TRANSFER UNDER THE CALIFORNIA UNIFORM TRANSFERS TO MINORS
ACT

I, ________________________
  (Name of Transferor or
  Name and Representative
  Capacity if a Fiduciary)
hereby transfer to ________________,
          (Name of Custodian)
as custodian for __________________
          (Name of Minor)
under the California Uniform Transfers to Minors Act, the following:
(insert a description of the custodial property sufficient to
identify it).

Dated: ________
_______________
  (Signature)

__________________ acknowledges
(Name of Custodian)
receipt of the property described above as custodian for the minor
named above under the California Uniform Transfers to Minors Act.

Dated: ________
________________________"
(Signature of Custodian)

   (c) A transferor shall place the custodian in control of the
custodial property as soon as practicable.



3910.  A transfer may be made only for one minor, and only one
person may be the custodian. All custodial property held under this
part by the same custodian for the benefit of the same minor
constitutes a single custodianship.


3911.  (a) The validity of a transfer made in a manner prescribed in
this part is not affected by any of the following:
   (1) Failure of the transferor to comply with subdivision (c) of
Section 3909.
   (2) Designation of an ineligible custodian, except designation of
the transferor in the case of property for which the transferor is
ineligible to serve as custodian under subdivision (a) of Section
3909.
   (3) Death or incapacity of a person nominated under Section 3903
or designated under Section 3909 as custodian, or the disclaimer of
the office by that person.
   (b) A transfer made pursuant to Section 3909 is irrevocable, and
the custodial property is indefeasibly vested in the minor, but the
custodian has all the rights, powers, duties, and authority provided
in this part, and neither the minor nor the minor's legal
representative has any right, power, duty, or authority with respect
to the custodial property except as provided in this part.
   (c) By making a transfer, the transferor incorporates in the
disposition all the provisions of this part and grants to the
custodian, and to any third person dealing with a person designated
as custodian, the respective powers, rights, and immunities provided
in this part.
   (d) A person is not precluded from being a custodian for a minor
under this part with respect to some property because the person is a
conservator of the minor with respect to other property.
   (e) A person who is the conservator of the minor is not precluded
from being a custodian for a minor under this part because the
custodial property has or will be transferred to the custodian from
the guardianship estate of the minor. In such case, for the purposes
of Section 3909, the custodian shall be deemed to be "an adult other
than the transferor."
   (f) In the cases described in subdivisions (d) and (e), with
respect to the property transferred to the custodian, this part
applies to the extent it would apply if the person to whom the
custodial property is transferred were not and had not been a
conservator of the minor.


3912.  (a) A custodian shall do all of the following:
   (1) Take control of custodial property.
   (2) Register or record title to custodial property if appropriate.
   (3) Collect, hold, manage, invest, and reinvest custodial
property.
   (b) In dealing with custodial property, a custodian shall observe
the standard of care that would be observed by a prudent person
dealing with property of another and is not limited by any other
statute restricting investments by fiduciaries except that:
   (1) If a custodian is not compensated for his or her services, the
custodian is not liable for losses to custodial property unless they
result from the custodian's bad faith, intentional wrongdoing, or
gross negligence, or from the custodian's failure to maintain the
standard of prudence in investing the custodial property provided in
this section.
   (2) A custodian, in the custodian's discretion and without
liability to the minor or the minor's estate, may retain any
custodial property received from a transferor.
   (c) A custodian may invest in or pay premiums on life insurance or
endowment policies on (1) the life of the minor only if the minor or
the minor's estate is the sole beneficiary or (2) the life of
another person in whom the minor has an insurable interest only to
the extent that the minor, the minor's estate, or the custodian in
the capacity of custodian, is the irrevocable beneficiary.
   (d) A custodian at all times shall keep custodial property
separate and distinct from all other property in a manner sufficient
to identify it clearly as custodial property of the minor. Custodial
property consisting of an undivided interest is so identified if the
minor's interest is held as a tenant in common and is fixed.
Custodial property subject to recordation is so identified if it is
recorded, and custodial property subject to registration is so
identified if it is either registered, or held in an account
designated, in the name of the custodian, followed in substance by
the words:
"as a custodian for _______________
           (Name of Minor)
under the California Uniform Transfers to Minors Act."
   (e) A custodian shall keep records of all transactions with
respect to custodial property, including information necessary for
the preparation of the minor's tax returns, and shall make them
available for inspection at reasonable intervals by a parent or legal
representative of the minor or by the minor if the minor has
attained the age of 14 years.



3913.  (a) A custodian, acting in a custodial capacity, has all the
rights, powers, and authority over custodial property that unmarried
adult owners have over their own property, but a custodian may
exercise those rights, powers, and authority in that capacity only.
   (b) This section does not relieve a custodian from liability for
breach of Section 3912.



3914.  (a) A custodian may deliver or pay to the minor or expend for
the minor's benefit as much of the custodial property as the
custodian considers advisable for the use and benefit of the minor,
without court order and without regard to (1) the duty or ability of
the custodian personally, or of any other person, to support the
minor or (2) any other income or property of the minor which may be
applicable or available for that purpose.
   (b) On petition of an interested person or the minor if the minor
has attained the age of 14 years, the court may order the custodian
to deliver or pay to the minor or expend for the minor's benefit so
much of the custodial property as the court considers advisable for
the use and benefit of the minor.
   (c) A delivery, payment, or expenditure under this section is in
addition to, not in substitution for, and does not affect, any
obligation of a person to support the minor.
   (d) In lieu of the powers and duties described in subdivision (a),
a transferor who is also the custodian may elect to govern his or
her custodial powers and duties under this subdivision. If such
election is made, the custodian shall not pay over to the minor for
expenditure by the minor, and shall not expend for the minor's use or
benefit, any part of the custodial property for any purpose prior to
the time specified in Section 3920, except by order of the court
upon a showing that the expenditure is necessary for the support,
maintenance, or education of the minor. When the powers and duties of
the custodian are governed by this subdivision, the
transferor-custodian shall file with the clerk of the court a
declaration in substantially the following form:


         Declaration Under the California Uniform Transfers to Minors
Act

I, _______________________,
      (Name of
   Transferor-Custodian)
as custodian for _________________
          (Name of Minor)
under the California Uniform Transfers to Minors Act, hereby
irrevocably elect to be governed under subdivision (d) of Section
3914 of the Probate Code in my custodial capacity over the following
described property _________________________
________________________.
   (Description of
  Custodial Property)

   I declare under penalty of perjury that the foregoing is true and
correct.

Dated: ____, 19__
    _____________________
      (Signature of
    Transferor-Custodian)



3915.  (a) A custodian is entitled to reimbursement from custodial
property for reasonable expenses incurred in the performance of the
custodian's duties.
   (b) Except for one who is a transferor under Section 3904, a
custodian has a noncumulative election during each calendar year to
charge reasonable compensation for services performed during that
year.
   (c) Except as provided in subdivision (f) of Section 3918, a
custodian need not give a bond.



3916.  A third person in good faith and without court order may act
on the instructions of, or otherwise deal with, any person purporting
to make a transfer or purporting to act in the capacity of a
custodian and, in the absence of knowledge, is not responsible for
determining any of the following:
   (a) The validity of the purported custodian's designation.
   (b) The propriety of, or the authority under this part for, any
act of the purported custodian.
   (c) The validity or propriety under this part of any instrument or
instructions executed or given either by the person purporting to
make a transfer or by the purported custodian.
   (d) The propriety of the application of any property of the minor
delivered to the purported custodian.



3917.  (a) A claim based on (1) a contract entered into by a
custodian acting in a custodial capacity, (2) an obligation arising
from the ownership or control of custodial property, or (3) a tort
committed during the custodianship, may be asserted against the
custodial property by proceeding against the custodian in the
custodial capacity, whether or not the custodian or the minor is
personally liable therefor.
   (b) A custodian is not personally liable for either of the
following:
   (1) On a contract properly entered into in the custodial capacity
unless the custodian fails to reveal that capacity and to identify
the custodianship in the contract.
   (2) For an obligation arising from control of custodial property
or for a tort committed during the custodianship unless the custodian
is personally at fault.
   (c) A minor is not personally liable for an obligation arising
from ownership of custodial property or for a tort committed during
the custodianship unless the minor is personally at fault.



3918.  (a) A person nominated under Section 3903 or designated under
Section 3909 as custodian may decline to serve by delivering a valid
disclaimer under Part 8 (commencing with Section 260) of Division 2
to the person who made the nomination or to the transferor or the
transferor's legal representative. If the event giving rise to a
transfer has not occurred and no substitute custodian able, willing,
and eligible to serve was nominated under Section 3903, the person
who made the nomination may nominate a substitute custodian under
Section 3903; otherwise the transferor or the transferor's legal
representative shall designate a substitute custodian at the time of
the transfer, in either case from among the persons eligible to serve
as custodian for that kind of property under subdivision (a) of
Section 3909. The custodian so designated has the rights of a
successor custodian.
   (b) A custodian at any time may designate a trust company or an
adult other than a transferor under Section 3904 as successor
custodian by executing and dating an instrument of designation before
a subscribing witness other than the successor. If the instrument of
designation does not contain or is not accompanied by the
resignation of the custodian, the designation of the successor does
not take effect until the custodian resigns, dies, becomes
incapacitated, or is removed. The transferor may designate one or
more persons as successor custodians to serve, in the designated
order of priority, in case the custodian originally designated or a
prior successor custodian is unable, declines, or is ineligible to
serve or resigns, dies, becomes incapacitated, or is removed. The
designation either (1) shall be made in the same transaction and by
the same document by which the transfer is made or (2) shall be made
by executing and dating a separate instrument of designation before a
subscribing witness other than a successor as a part of the same
transaction and contemporaneously with the execution of the document
by which the transfer is made. The designation is made by setting
forth the successor custodian's name, followed in substance by the
words: "is designated 	
	
	
	
	

State Codes and Statutes

Statutes > California > Prob > 3900-3925

PROBATE CODE
SECTION 3900-3925



3900.  This part may be cited as the "California Uniform Transfers
to Minors Act."



3901.  In this part:
   (a) "Adult" means an individual who has attained the age of 18
years.
   (b) "Benefit plan" means an employer's plan for the benefit of an
employee or partner.
   (c) "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.
   (d) "Conservator" means a person appointed or qualified by a court
to act as general, limited, or temporary guardian of a minor's
property or a person legally authorized to perform substantially the
same functions.
   (e) "Court" means the superior court.
   (f) "Custodial property" means (1) any interest in property
transferred to a custodian under this part and (2) the income from
and proceeds of that interest in property.
   (g) "Custodian" means a person so designated under Section 3909 or
a successor or substitute custodian designated under Section 3918.
   (h) "Financial institution" means a bank, trust company, savings
institution, or credit union, chartered and supervised under state or
federal law or an industrial loan company licensed and supervised
under the laws of this state.
   (i) "Legal representative" means an individual's personal
representative or conservator.
   (j) "Member of the minor's family" means the minor's parent,
stepparent, spouse, grandparent, brother, sister, uncle, or aunt,
whether of the whole or half blood or by adoption.
   (k) "Minor" means:
   (1) Except as provided in paragraph (2), an individual who has not
attained the age of 18 years.
   (2) When used with reference to the beneficiary for whose benefit
custodial property is held or is to be held, an individual who has
not attained the age at which the custodian is required under
Sections 3920 and 3920.5 to transfer the custodial property to the
beneficiary.
   (l) "Person" means an individual, corporation, organization, or
other legal entity.
   (m) "Personal representative" means an executor, administrator,
successor personal representative, or special administrator of a
decedent's estate or a person legally authorized to perform
substantially the same functions.
   (n) "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.
   (o) "Transfer" means a transaction that creates custodial property
under Section 3909.
   (p) "Transferor" means a person who makes a transfer under this
part.
   (q) "Trust company" means a financial institution, corporation, or
other legal entity, authorized to exercise general trust powers.




3902.  (a) This part applies to a transfer that refers to this part
in the designation under subdivision (a) of Section 3909 by which the
transfer is made if at the time of the transfer, the transferor, the
minor, or the custodian is a resident of this state or the custodial
property is located in this state. The custodianship so created
remains subject to this part despite a subsequent change in residence
of a transferor, the minor, or the custodian, or the removal of
custodial property from this state.
   (b) A person designated as custodian under this part is subject to
personal jurisdiction in this state with respect to any matter
relating to the custodianship.
   (c) A transfer that purports to be made and which is valid under
the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act,
or a substantially similar act, of another state is governed by the
law of the designated state and may be executed and is enforceable in
this state if at the time of the transfer, the transferor, the
minor, or the custodian is a resident of the designated state or the
custodial property is located in the designated state.



3903.  (a) A person having the right to designate the recipient of
property transferable upon the occurrence of a future event may
revocably nominate a custodian to receive the property for a minor
beneficiary upon the occurrence of the event by naming the custodian
followed in substance by the words:
"as custodian for _______________
          (Name of Minor)
under the California Uniform Transfers to Minors Act."
The nomination may name one or more persons as substitute custodians
to whom the property must be transferred, in the order named, if the
first nominated custodian dies before the transfer or is unable,
declines, or is ineligible to serve. The nomination may be made in a
will, a trust, a deed, an instrument exercising a power of
appointment, or in a writing designating a beneficiary of contractual
rights which is registered with or delivered to the payor, issuer,
or other obligor of the contractual rights.
   (b) A custodian nominated under this section must be a person to
whom a transfer of property of that kind may be made under
subdivision (a) of Section 3909.
   (c) The nomination of a custodian under this section does not
create custodial property until the nominating instrument becomes
irrevocable or a transfer to the nominated custodian is completed
under Section 3909. Unless the nomination of a custodian has been
revoked, upon the occurrence of the future event, the custodianship
becomes effective, and the custodian shall enforce a transfer of the
custodial property pursuant to Section 3909.



3904.  A person may make a transfer by irrevocable gift to, or the
irrevocable exercise of a power of appointment in favor of, a
custodian for the benefit of a minor pursuant to Section 3909.



3905.  (a) A personal representative or trustee may make an
irrevocable transfer pursuant to Section 3909 to a custodian for the
benefit of a minor as authorized in the governing will or trust.
   (b) If the testator or settlor has nominated a custodian under
Section 3903 to receive the custodial property, the transfer shall be
made to that person.
   (c) If the testator or settlor has not nominated a custodian under
Section 3903, or all persons so nominated as custodian die before
the transfer or are unable, decline, or are ineligible to serve, the
personal representative or the trustee, as the case may be, shall
designate the custodian from among those eligible to serve as
custodian for property of that kind under subdivision (a) of Section
3909.


3906.  (a) Subject to subdivision (c), a personal representative or
trustee may make an irrevocable transfer to another adult or trust
company as custodian for the benefit of a minor pursuant to Section
3909, in the absence of a will or under a will or trust that does not
contain an authorization to do so.
   (b) Subject to subdivision (c), a conservator may make an
irrevocable transfer to another adult or trust company as custodian
for the benefit of the minor pursuant to Section 3909.
   (c) A transfer under subdivision (a) or (b) may be made only if
all of the following requirements are satisfied:
   (1) The personal representative, trustee, or conservator considers
the transfer to be in the best interest of the minor.
   (2) The transfer is not prohibited by or inconsistent with
provisions of the applicable will, trust agreement, or other
governing instrument. For the purposes of this subdivision, a
spendthrift provision (such as that described in Section 15300) shall
not prohibit or be inconsistent with the transfer.
   (3) The transfer is authorized by the court if it exceeds ten
thousand dollars ($10,000) in value; provided, however, that such
court authorization shall not be required when the transfer is to a
custodian who is either (A) a trust company or (B) an individual
designated as a trustee by the terms of a trust instrument which does
not require a bond.



3907.  (a) Subject to subdivisions (b) and (c), a person not subject
to Section 3905 or 3906 who holds property of, or owes a liquidated
debt to, a minor not having a conservator may make an irrevocable
transfer to a custodian for the benefit of the minor pursuant to
Section 3909.
   (b) If a person having the right to do so under Section 3903 has
nominated a custodian under that section to receive the custodial
property, the transfer shall be made to that person.
   (c) If no custodian has been nominated under Section 3903, or all
persons so nominated as custodian die before the transfer or are
unable, decline, or are ineligible to serve, a transfer under this
section may be made to an adult member of the minor's family or to a
trust company unless the property exceeds ten thousand dollars
($10,000) in value.



3908.  A written acknowledgment of delivery by a custodian
constitutes a sufficient receipt and discharge for custodial property
transferred to the custodian pursuant to this part.



3909.  (a) Custodial property is created and a transfer is made
whenever any of the following occurs:
   (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 California Uniform Transfers to Minors Act."
   (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 subdivision (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 California 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 California Uniform Transfers to Minors Act."
   (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 California 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 California Uniform Transfers to Minors Act."
   (5) 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 California 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 California Uniform Transfers to Minors Act."
   (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 California Uniform Transfers to Minors Act."
   (7) An interest in any property not described in paragraphs (1)
through (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 subdivision (b).
   (b) An instrument in the following form satisfies the requirements
of subparagraph (B) of paragraph (1) and paragraph (7) of
subdivision (a):


          "TRANSFER UNDER THE CALIFORNIA UNIFORM TRANSFERS TO MINORS
ACT

I, ________________________
  (Name of Transferor or
  Name and Representative
  Capacity if a Fiduciary)
hereby transfer to ________________,
          (Name of Custodian)
as custodian for __________________
          (Name of Minor)
under the California Uniform Transfers to Minors Act, the following:
(insert a description of the custodial property sufficient to
identify it).

Dated: ________
_______________
  (Signature)

__________________ acknowledges
(Name of Custodian)
receipt of the property described above as custodian for the minor
named above under the California Uniform Transfers to Minors Act.

Dated: ________
________________________"
(Signature of Custodian)

   (c) A transferor shall place the custodian in control of the
custodial property as soon as practicable.



3910.  A transfer may be made only for one minor, and only one
person may be the custodian. All custodial property held under this
part by the same custodian for the benefit of the same minor
constitutes a single custodianship.


3911.  (a) The validity of a transfer made in a manner prescribed in
this part is not affected by any of the following:
   (1) Failure of the transferor to comply with subdivision (c) of
Section 3909.
   (2) Designation of an ineligible custodian, except designation of
the transferor in the case of property for which the transferor is
ineligible to serve as custodian under subdivision (a) of Section
3909.
   (3) Death or incapacity of a person nominated under Section 3903
or designated under Section 3909 as custodian, or the disclaimer of
the office by that person.
   (b) A transfer made pursuant to Section 3909 is irrevocable, and
the custodial property is indefeasibly vested in the minor, but the
custodian has all the rights, powers, duties, and authority provided
in this part, and neither the minor nor the minor's legal
representative has any right, power, duty, or authority with respect
to the custodial property except as provided in this part.
   (c) By making a transfer, the transferor incorporates in the
disposition all the provisions of this part and grants to the
custodian, and to any third person dealing with a person designated
as custodian, the respective powers, rights, and immunities provided
in this part.
   (d) A person is not precluded from being a custodian for a minor
under this part with respect to some property because the person is a
conservator of the minor with respect to other property.
   (e) A person who is the conservator of the minor is not precluded
from being a custodian for a minor under this part because the
custodial property has or will be transferred to the custodian from
the guardianship estate of the minor. In such case, for the purposes
of Section 3909, the custodian shall be deemed to be "an adult other
than the transferor."
   (f) In the cases described in subdivisions (d) and (e), with
respect to the property transferred to the custodian, this part
applies to the extent it would apply if the person to whom the
custodial property is transferred were not and had not been a
conservator of the minor.


3912.  (a) A custodian shall do all of the following:
   (1) Take control of custodial property.
   (2) Register or record title to custodial property if appropriate.
   (3) Collect, hold, manage, invest, and reinvest custodial
property.
   (b) In dealing with custodial property, a custodian shall observe
the standard of care that would be observed by a prudent person
dealing with property of another and is not limited by any other
statute restricting investments by fiduciaries except that:
   (1) If a custodian is not compensated for his or her services, the
custodian is not liable for losses to custodial property unless they
result from the custodian's bad faith, intentional wrongdoing, or
gross negligence, or from the custodian's failure to maintain the
standard of prudence in investing the custodial property provided in
this section.
   (2) A custodian, in the custodian's discretion and without
liability to the minor or the minor's estate, may retain any
custodial property received from a transferor.
   (c) A custodian may invest in or pay premiums on life insurance or
endowment policies on (1) the life of the minor only if the minor or
the minor's estate is the sole beneficiary or (2) the life of
another person in whom the minor has an insurable interest only to
the extent that the minor, the minor's estate, or the custodian in
the capacity of custodian, is the irrevocable beneficiary.
   (d) A custodian at all times shall keep custodial property
separate and distinct from all other property in a manner sufficient
to identify it clearly as custodial property of the minor. Custodial
property consisting of an undivided interest is so identified if the
minor's interest is held as a tenant in common and is fixed.
Custodial property subject to recordation is so identified if it is
recorded, and custodial property subject to registration is so
identified if it is either registered, or held in an account
designated, in the name of the custodian, followed in substance by
the words:
"as a custodian for _______________
           (Name of Minor)
under the California Uniform Transfers to Minors Act."
   (e) A custodian shall keep records of all transactions with
respect to custodial property, including information necessary for
the preparation of the minor's tax returns, and shall make them
available for inspection at reasonable intervals by a parent or legal
representative of the minor or by the minor if the minor has
attained the age of 14 years.



3913.  (a) A custodian, acting in a custodial capacity, has all the
rights, powers, and authority over custodial property that unmarried
adult owners have over their own property, but a custodian may
exercise those rights, powers, and authority in that capacity only.
   (b) This section does not relieve a custodian from liability for
breach of Section 3912.



3914.  (a) A custodian may deliver or pay to the minor or expend for
the minor's benefit as much of the custodial property as the
custodian considers advisable for the use and benefit of the minor,
without court order and without regard to (1) the duty or ability of
the custodian personally, or of any other person, to support the
minor or (2) any other income or property of the minor which may be
applicable or available for that purpose.
   (b) On petition of an interested person or the minor if the minor
has attained the age of 14 years, the court may order the custodian
to deliver or pay to the minor or expend for the minor's benefit so
much of the custodial property as the court considers advisable for
the use and benefit of the minor.
   (c) A delivery, payment, or expenditure under this section is in
addition to, not in substitution for, and does not affect, any
obligation of a person to support the minor.
   (d) In lieu of the powers and duties described in subdivision (a),
a transferor who is also the custodian may elect to govern his or
her custodial powers and duties under this subdivision. If such
election is made, the custodian shall not pay over to the minor for
expenditure by the minor, and shall not expend for the minor's use or
benefit, any part of the custodial property for any purpose prior to
the time specified in Section 3920, except by order of the court
upon a showing that the expenditure is necessary for the support,
maintenance, or education of the minor. When the powers and duties of
the custodian are governed by this subdivision, the
transferor-custodian shall file with the clerk of the court a
declaration in substantially the following form:


         Declaration Under the California Uniform Transfers to Minors
Act

I, _______________________,
      (Name of
   Transferor-Custodian)
as custodian for _________________
          (Name of Minor)
under the California Uniform Transfers to Minors Act, hereby
irrevocably elect to be governed under subdivision (d) of Section
3914 of the Probate Code in my custodial capacity over the following
described property _________________________
________________________.
   (Description of
  Custodial Property)

   I declare under penalty of perjury that the foregoing is true and
correct.

Dated: ____, 19__
    _____________________
      (Signature of
    Transferor-Custodian)



3915.  (a) A custodian is entitled to reimbursement from custodial
property for reasonable expenses incurred in the performance of the
custodian's duties.
   (b) Except for one who is a transferor under Section 3904, a
custodian has a noncumulative election during each calendar year to
charge reasonable compensation for services performed during that
year.
   (c) Except as provided in subdivision (f) of Section 3918, a
custodian need not give a bond.



3916.  A third person in good faith and without court order may act
on the instructions of, or otherwise deal with, any person purporting
to make a transfer or purporting to act in the capacity of a
custodian and, in the absence of knowledge, is not responsible for
determining any of the following:
   (a) The validity of the purported custodian's designation.
   (b) The propriety of, or the authority under this part for, any
act of the purported custodian.
   (c) The validity or propriety under this part of any instrument or
instructions executed or given either by the person purporting to
make a transfer or by the purported custodian.
   (d) The propriety of the application of any property of the minor
delivered to the purported custodian.



3917.  (a) A claim based on (1) a contract entered into by a
custodian acting in a custodial capacity, (2) an obligation arising
from the ownership or control of custodial property, or (3) a tort
committed during the custodianship, may be asserted against the
custodial property by proceeding against the custodian in the
custodial capacity, whether or not the custodian or the minor is
personally liable therefor.
   (b) A custodian is not personally liable for either of the
following:
   (1) On a contract properly entered into in the custodial capacity
unless the custodian fails to reveal that capacity and to identify
the custodianship in the contract.
   (2) For an obligation arising from control of custodial property
or for a tort committed during the custodianship unless the custodian
is personally at fault.
   (c) A minor is not personally liable for an obligation arising
from ownership of custodial property or for a tort committed during
the custodianship unless the minor is personally at fault.



3918.  (a) A person nominated under Section 3903 or designated under
Section 3909 as custodian may decline to serve by delivering a valid
disclaimer under Part 8 (commencing with Section 260) of Division 2
to the person who made the nomination or to the transferor or the
transferor's legal representative. If the event giving rise to a
transfer has not occurred and no substitute custodian able, willing,
and eligible to serve was nominated under Section 3903, the person
who made the nomination may nominate a substitute custodian under
Section 3903; otherwise the transferor or the transferor's legal
representative shall designate a substitute custodian at the time of
the transfer, in either case from among the persons eligible to serve
as custodian for that kind of property under subdivision (a) of
Section 3909. The custodian so designated has the rights of a
successor custodian.
   (b) A custodian at any time may designate a trust company or an
adult other than a transferor under Section 3904 as successor
custodian by executing and dating an instrument of designation before
a subscribing witness other than the successor. If the instrument of
designation does not contain or is not accompanied by the
resignation of the custodian, the designation of the successor does
not take effect until the custodian resigns, dies, becomes
incapacitated, or is removed. The transferor may designate one or
more persons as successor custodians to serve, in the designated
order of priority, in case the custodian originally designated or a
prior successor custodian is unable, declines, or is ineligible to
serve or resigns, dies, becomes incapacitated, or is removed. The
designation either (1) shall be made in the same transaction and by
the same document by which the transfer is made or (2) shall be made
by executing and dating a separate instrument of designation before a
subscribing witness other than a successor as a part of the same
transaction and contemporaneously with the execution of the document
by which the transfer is made. The designation is made by setting
forth the successor custodian's name, followed in substance by the
words: "is designated 	
	











































		
		
	

	
	
	

			

			
		

		

State Codes and Statutes

State Codes and Statutes

Statutes > California > Prob > 3900-3925

PROBATE CODE
SECTION 3900-3925



3900.  This part may be cited as the "California Uniform Transfers
to Minors Act."



3901.  In this part:
   (a) "Adult" means an individual who has attained the age of 18
years.
   (b) "Benefit plan" means an employer's plan for the benefit of an
employee or partner.
   (c) "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.
   (d) "Conservator" means a person appointed or qualified by a court
to act as general, limited, or temporary guardian of a minor's
property or a person legally authorized to perform substantially the
same functions.
   (e) "Court" means the superior court.
   (f) "Custodial property" means (1) any interest in property
transferred to a custodian under this part and (2) the income from
and proceeds of that interest in property.
   (g) "Custodian" means a person so designated under Section 3909 or
a successor or substitute custodian designated under Section 3918.
   (h) "Financial institution" means a bank, trust company, savings
institution, or credit union, chartered and supervised under state or
federal law or an industrial loan company licensed and supervised
under the laws of this state.
   (i) "Legal representative" means an individual's personal
representative or conservator.
   (j) "Member of the minor's family" means the minor's parent,
stepparent, spouse, grandparent, brother, sister, uncle, or aunt,
whether of the whole or half blood or by adoption.
   (k) "Minor" means:
   (1) Except as provided in paragraph (2), an individual who has not
attained the age of 18 years.
   (2) When used with reference to the beneficiary for whose benefit
custodial property is held or is to be held, an individual who has
not attained the age at which the custodian is required under
Sections 3920 and 3920.5 to transfer the custodial property to the
beneficiary.
   (l) "Person" means an individual, corporation, organization, or
other legal entity.
   (m) "Personal representative" means an executor, administrator,
successor personal representative, or special administrator of a
decedent's estate or a person legally authorized to perform
substantially the same functions.
   (n) "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.
   (o) "Transfer" means a transaction that creates custodial property
under Section 3909.
   (p) "Transferor" means a person who makes a transfer under this
part.
   (q) "Trust company" means a financial institution, corporation, or
other legal entity, authorized to exercise general trust powers.




3902.  (a) This part applies to a transfer that refers to this part
in the designation under subdivision (a) of Section 3909 by which the
transfer is made if at the time of the transfer, the transferor, the
minor, or the custodian is a resident of this state or the custodial
property is located in this state. The custodianship so created
remains subject to this part despite a subsequent change in residence
of a transferor, the minor, or the custodian, or the removal of
custodial property from this state.
   (b) A person designated as custodian under this part is subject to
personal jurisdiction in this state with respect to any matter
relating to the custodianship.
   (c) A transfer that purports to be made and which is valid under
the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act,
or a substantially similar act, of another state is governed by the
law of the designated state and may be executed and is enforceable in
this state if at the time of the transfer, the transferor, the
minor, or the custodian is a resident of the designated state or the
custodial property is located in the designated state.



3903.  (a) A person having the right to designate the recipient of
property transferable upon the occurrence of a future event may
revocably nominate a custodian to receive the property for a minor
beneficiary upon the occurrence of the event by naming the custodian
followed in substance by the words:
"as custodian for _______________
          (Name of Minor)
under the California Uniform Transfers to Minors Act."
The nomination may name one or more persons as substitute custodians
to whom the property must be transferred, in the order named, if the
first nominated custodian dies before the transfer or is unable,
declines, or is ineligible to serve. The nomination may be made in a
will, a trust, a deed, an instrument exercising a power of
appointment, or in a writing designating a beneficiary of contractual
rights which is registered with or delivered to the payor, issuer,
or other obligor of the contractual rights.
   (b) A custodian nominated under this section must be a person to
whom a transfer of property of that kind may be made under
subdivision (a) of Section 3909.
   (c) The nomination of a custodian under this section does not
create custodial property until the nominating instrument becomes
irrevocable or a transfer to the nominated custodian is completed
under Section 3909. Unless the nomination of a custodian has been
revoked, upon the occurrence of the future event, the custodianship
becomes effective, and the custodian shall enforce a transfer of the
custodial property pursuant to Section 3909.



3904.  A person may make a transfer by irrevocable gift to, or the
irrevocable exercise of a power of appointment in favor of, a
custodian for the benefit of a minor pursuant to Section 3909.



3905.  (a) A personal representative or trustee may make an
irrevocable transfer pursuant to Section 3909 to a custodian for the
benefit of a minor as authorized in the governing will or trust.
   (b) If the testator or settlor has nominated a custodian under
Section 3903 to receive the custodial property, the transfer shall be
made to that person.
   (c) If the testator or settlor has not nominated a custodian under
Section 3903, or all persons so nominated as custodian die before
the transfer or are unable, decline, or are ineligible to serve, the
personal representative or the trustee, as the case may be, shall
designate the custodian from among those eligible to serve as
custodian for property of that kind under subdivision (a) of Section
3909.


3906.  (a) Subject to subdivision (c), a personal representative or
trustee may make an irrevocable transfer to another adult or trust
company as custodian for the benefit of a minor pursuant to Section
3909, in the absence of a will or under a will or trust that does not
contain an authorization to do so.
   (b) Subject to subdivision (c), a conservator may make an
irrevocable transfer to another adult or trust company as custodian
for the benefit of the minor pursuant to Section 3909.
   (c) A transfer under subdivision (a) or (b) may be made only if
all of the following requirements are satisfied:
   (1) The personal representative, trustee, or conservator considers
the transfer to be in the best interest of the minor.
   (2) The transfer is not prohibited by or inconsistent with
provisions of the applicable will, trust agreement, or other
governing instrument. For the purposes of this subdivision, a
spendthrift provision (such as that described in Section 15300) shall
not prohibit or be inconsistent with the transfer.
   (3) The transfer is authorized by the court if it exceeds ten
thousand dollars ($10,000) in value; provided, however, that such
court authorization shall not be required when the transfer is to a
custodian who is either (A) a trust company or (B) an individual
designated as a trustee by the terms of a trust instrument which does
not require a bond.



3907.  (a) Subject to subdivisions (b) and (c), a person not subject
to Section 3905 or 3906 who holds property of, or owes a liquidated
debt to, a minor not having a conservator may make an irrevocable
transfer to a custodian for the benefit of the minor pursuant to
Section 3909.
   (b) If a person having the right to do so under Section 3903 has
nominated a custodian under that section to receive the custodial
property, the transfer shall be made to that person.
   (c) If no custodian has been nominated under Section 3903, or all
persons so nominated as custodian die before the transfer or are
unable, decline, or are ineligible to serve, a transfer under this
section may be made to an adult member of the minor's family or to a
trust company unless the property exceeds ten thousand dollars
($10,000) in value.



3908.  A written acknowledgment of delivery by a custodian
constitutes a sufficient receipt and discharge for custodial property
transferred to the custodian pursuant to this part.



3909.  (a) Custodial property is created and a transfer is made
whenever any of the following occurs:
   (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 California Uniform Transfers to Minors Act."
   (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 subdivision (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 California 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 California Uniform Transfers to Minors Act."
   (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 California 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 California Uniform Transfers to Minors Act."
   (5) 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 California 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 California Uniform Transfers to Minors Act."
   (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 California Uniform Transfers to Minors Act."
   (7) An interest in any property not described in paragraphs (1)
through (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 subdivision (b).
   (b) An instrument in the following form satisfies the requirements
of subparagraph (B) of paragraph (1) and paragraph (7) of
subdivision (a):


          "TRANSFER UNDER THE CALIFORNIA UNIFORM TRANSFERS TO MINORS
ACT

I, ________________________
  (Name of Transferor or
  Name and Representative
  Capacity if a Fiduciary)
hereby transfer to ________________,
          (Name of Custodian)
as custodian for __________________
          (Name of Minor)
under the California Uniform Transfers to Minors Act, the following:
(insert a description of the custodial property sufficient to
identify it).

Dated: ________
_______________
  (Signature)

__________________ acknowledges
(Name of Custodian)
receipt of the property described above as custodian for the minor
named above under the California Uniform Transfers to Minors Act.

Dated: ________
________________________"
(Signature of Custodian)

   (c) A transferor shall place the custodian in control of the
custodial property as soon as practicable.



3910.  A transfer may be made only for one minor, and only one
person may be the custodian. All custodial property held under this
part by the same custodian for the benefit of the same minor
constitutes a single custodianship.


3911.  (a) The validity of a transfer made in a manner prescribed in
this part is not affected by any of the following:
   (1) Failure of the transferor to comply with subdivision (c) of
Section 3909.
   (2) Designation of an ineligible custodian, except designation of
the transferor in the case of property for which the transferor is
ineligible to serve as custodian under subdivision (a) of Section
3909.
   (3) Death or incapacity of a person nominated under Section 3903
or designated under Section 3909 as custodian, or the disclaimer of
the office by that person.
   (b) A transfer made pursuant to Section 3909 is irrevocable, and
the custodial property is indefeasibly vested in the minor, but the
custodian has all the rights, powers, duties, and authority provided
in this part, and neither the minor nor the minor's legal
representative has any right, power, duty, or authority with respect
to the custodial property except as provided in this part.
   (c) By making a transfer, the transferor incorporates in the
disposition all the provisions of this part and grants to the
custodian, and to any third person dealing with a person designated
as custodian, the respective powers, rights, and immunities provided
in this part.
   (d) A person is not precluded from being a custodian for a minor
under this part with respect to some property because the person is a
conservator of the minor with respect to other property.
   (e) A person who is the conservator of the minor is not precluded
from being a custodian for a minor under this part because the
custodial property has or will be transferred to the custodian from
the guardianship estate of the minor. In such case, for the purposes
of Section 3909, the custodian shall be deemed to be "an adult other
than the transferor."
   (f) In the cases described in subdivisions (d) and (e), with
respect to the property transferred to the custodian, this part
applies to the extent it would apply if the person to whom the
custodial property is transferred were not and had not been a
conservator of the minor.


3912.  (a) A custodian shall do all of the following:
   (1) Take control of custodial property.
   (2) Register or record title to custodial property if appropriate.
   (3) Collect, hold, manage, invest, and reinvest custodial
property.
   (b) In dealing with custodial property, a custodian shall observe
the standard of care that would be observed by a prudent person
dealing with property of another and is not limited by any other
statute restricting investments by fiduciaries except that:
   (1) If a custodian is not compensated for his or her services, the
custodian is not liable for losses to custodial property unless they
result from the custodian's bad faith, intentional wrongdoing, or
gross negligence, or from the custodian's failure to maintain the
standard of prudence in investing the custodial property provided in
this section.
   (2) A custodian, in the custodian's discretion and without
liability to the minor or the minor's estate, may retain any
custodial property received from a transferor.
   (c) A custodian may invest in or pay premiums on life insurance or
endowment policies on (1) the life of the minor only if the minor or
the minor's estate is the sole beneficiary or (2) the life of
another person in whom the minor has an insurable interest only to
the extent that the minor, the minor's estate, or the custodian in
the capacity of custodian, is the irrevocable beneficiary.
   (d) A custodian at all times shall keep custodial property
separate and distinct from all other property in a manner sufficient
to identify it clearly as custodial property of the minor. Custodial
property consisting of an undivided interest is so identified if the
minor's interest is held as a tenant in common and is fixed.
Custodial property subject to recordation is so identified if it is
recorded, and custodial property subject to registration is so
identified if it is either registered, or held in an account
designated, in the name of the custodian, followed in substance by
the words:
"as a custodian for _______________
           (Name of Minor)
under the California Uniform Transfers to Minors Act."
   (e) A custodian shall keep records of all transactions with
respect to custodial property, including information necessary for
the preparation of the minor's tax returns, and shall make them
available for inspection at reasonable intervals by a parent or legal
representative of the minor or by the minor if the minor has
attained the age of 14 years.



3913.  (a) A custodian, acting in a custodial capacity, has all the
rights, powers, and authority over custodial property that unmarried
adult owners have over their own property, but a custodian may
exercise those rights, powers, and authority in that capacity only.
   (b) This section does not relieve a custodian from liability for
breach of Section 3912.



3914.  (a) A custodian may deliver or pay to the minor or expend for
the minor's benefit as much of the custodial property as the
custodian considers advisable for the use and benefit of the minor,
without court order and without regard to (1) the duty or ability of
the custodian personally, or of any other person, to support the
minor or (2) any other income or property of the minor which may be
applicable or available for that purpose.
   (b) On petition of an interested person or the minor if the minor
has attained the age of 14 years, the court may order the custodian
to deliver or pay to the minor or expend for the minor's benefit so
much of the custodial property as the court considers advisable for
the use and benefit of the minor.
   (c) A delivery, payment, or expenditure under this section is in
addition to, not in substitution for, and does not affect, any
obligation of a person to support the minor.
   (d) In lieu of the powers and duties described in subdivision (a),
a transferor who is also the custodian may elect to govern his or
her custodial powers and duties under this subdivision. If such
election is made, the custodian shall not pay over to the minor for
expenditure by the minor, and shall not expend for the minor's use or
benefit, any part of the custodial property for any purpose prior to
the time specified in Section 3920, except by order of the court
upon a showing that the expenditure is necessary for the support,
maintenance, or education of the minor. When the powers and duties of
the custodian are governed by this subdivision, the
transferor-custodian shall file with the clerk of the court a
declaration in substantially the following form:


         Declaration Under the California Uniform Transfers to Minors
Act

I, _______________________,
      (Name of
   Transferor-Custodian)
as custodian for _________________
          (Name of Minor)
under the California Uniform Transfers to Minors Act, hereby
irrevocably elect to be governed under subdivision (d) of Section
3914 of the Probate Code in my custodial capacity over the following
described property _________________________
________________________.
   (Description of
  Custodial Property)

   I declare under penalty of perjury that the foregoing is true and
correct.

Dated: ____, 19__
    _____________________
      (Signature of
    Transferor-Custodian)



3915.  (a) A custodian is entitled to reimbursement from custodial
property for reasonable expenses incurred in the performance of the
custodian's duties.
   (b) Except for one who is a transferor under Section 3904, a
custodian has a noncumulative election during each calendar year to
charge reasonable compensation for services performed during that
year.
   (c) Except as provided in subdivision (f) of Section 3918, a
custodian need not give a bond.



3916.  A third person in good faith and without court order may act
on the instructions of, or otherwise deal with, any person purporting
to make a transfer or purporting to act in the capacity of a
custodian and, in the absence of knowledge, is not responsible for
determining any of the following:
   (a) The validity of the purported custodian's designation.
   (b) The propriety of, or the authority under this part for, any
act of the purported custodian.
   (c) The validity or propriety under this part of any instrument or
instructions executed or given either by the person purporting to
make a transfer or by the purported custodian.
   (d) The propriety of the application of any property of the minor
delivered to the purported custodian.



3917.  (a) A claim based on (1) a contract entered into by a
custodian acting in a custodial capacity, (2) an obligation arising
from the ownership or control of custodial property, or (3) a tort
committed during the custodianship, may be asserted against the
custodial property by proceeding against the custodian in the
custodial capacity, whether or not the custodian or the minor is
personally liable therefor.
   (b) A custodian is not personally liable for either of the
following:
   (1) On a contract properly entered into in the custodial capacity
unless the custodian fails to reveal that capacity and to identify
the custodianship in the contract.
   (2) For an obligation arising from control of custodial property
or for a tort committed during the custodianship unless the custodian
is personally at fault.
   (c) A minor is not personally liable for an obligation arising
from ownership of custodial property or for a tort committed during
the custodianship unless the minor is personally at fault.



3918.  (a) A person nominated under Section 3903 or designated under
Section 3909 as custodian may decline to serve by delivering a valid
disclaimer under Part 8 (commencing with Section 260) of Division 2
to the person who made the nomination or to the transferor or the
transferor's legal representative. If the event giving rise to a
transfer has not occurred and no substitute custodian able, willing,
and eligible to serve was nominated under Section 3903, the person
who made the nomination may nominate a substitute custodian under
Section 3903; otherwise the transferor or the transferor's legal
representative shall designate a substitute custodian at the time of
the transfer, in either case from among the persons eligible to serve
as custodian for that kind of property under subdivision (a) of
Section 3909. The custodian so designated has the rights of a
successor custodian.
   (b) A custodian at any time may designate a trust company or an
adult other than a transferor under Section 3904 as successor
custodian by executing and dating an instrument of designation before
a subscribing witness other than the successor. If the instrument of
designation does not contain or is not accompanied by the
resignation of the custodian, the designation of the successor does
not take effect until the custodian resigns, dies, becomes
incapacitated, or is removed. The transferor may designate one or
more persons as successor custodians to serve, in the designated
order of priority, in case the custodian originally designated or a
prior successor custodian is unable, declines, or is ineligible to
serve or resigns, dies, becomes incapacitated, or is removed. The
designation either (1) shall be made in the same transaction and by
the same document by which the transfer is made or (2) shall be made
by executing and dating a separate instrument of designation before a
subscribing witness other than a successor as a part of the same
transaction and contemporaneously with the execution of the document
by which the transfer is made. The designation is made by setting
forth the successor custodian's name, followed in substance by the
words: "is designated