§554B-17  Termination and distribution. 
(a)  A custodial trust terminates on the custodial trustee's receipt of a
signed written direction of the beneficiary, if not incapacitated within
section 554B-10, or of the beneficiary's conservator, if any, or upon the
beneficiary's death.  Upon termination, the custodial trustee shall transfer
the unexpended custodial trust property:



(1)  To the beneficiary, if not incapacitated;



(2)  To the conservator or other court-designated
recipient for an incapacitated beneficiary; or



(3)  Upon the beneficiary's death, in the following
order:



(A)  As last directed in a writing signed by
the deceased beneficiary who was at the time not incapacitated and received by
the custodial trustee during the life of the deceased beneficiary;



(B)  To the survivor of multiple beneficiaries
when survivorship is provided pursuant to section 554B-6;



(C)  As designated in the custodial trust
instrument; or



(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 benefit of the distributee as beneficiary until the
incapacity is removed or the custodial trust is terminated by the distributee's
conservator.



(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. [L 1989, c 76, pt of §1; am L 2004, c 161, §36]