CHAPTER 8.6. UNIFORM CUSTODIAL TRUST ACT
IC 30-2-8.6
Chapter 8.6. Uniform Custodial Trust Act
IC 30-2-8.6-1
Applicability
Sec. 1. (a) This chapter applies to a transfer or declarationcreating a custodial trust that refers to this chapter if, at the time ofthe transfer or declaration:
(1) the transferor, beneficiary, or custodial trustee:
(A) is a resident of; or
(B) has its principal place of business in Indiana; or
(2) custodial trust property is located in Indiana.
(b) The custodial trust remains subject to this chapter even if thetransferor, beneficiary, or custodial trustee:
(1) changes its residence or principal place of business; or
(2) removes custodial trust property;
to a location outside Indiana.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-2
Transfer under other state's law; enforcement
Sec. 2. A transfer made pursuant to an act of another statesubstantially similar to this chapter is governed by the law of thatstate and may be enforced in Indiana.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-3
Construction
Sec. 3. This chapter shall be applied and construed to effectuateits general purpose to make uniform the law with respect to thesubject of this chapter among states enacting it.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-4
Citing chapter
Sec. 4. This chapter may be cited as the "Indiana UniformCustodial Trust Act".
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-5
"Adult"
Sec. 5. As used in this chapter, "adult" means an individual whois at least eighteen (18) years of age.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-6
"Beneficiary"
Sec. 6. As used in this chapter, "beneficiary" means an individualfor whom property:
(1) has been transferred to; or (2) is held under a declaration of trust by;
a custodial trustee for the individual's use and benefit under thischapter.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-7
"Custodial trust property"
Sec. 7. As used in this chapter, "custodial trust property" meansthe following:
(1) An interest in property:
(A) transferred to; or
(B) held under a declaration of trust by;
a custodial trustee under this chapter.
(2) The income from and proceeds of the property interestdescribed in subdivision (1).
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-8
"Custodial trustee"
Sec. 8. As used in this chapter, "custodial trustee" means a persondesignated as:
(1) trustee; or
(2) substitute or successor to the person designated as trustee;
of a custodial trust under this chapter.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-9
"Guardian"
Sec. 9. As used in this chapter, "guardian" has the meaning setforth in IC 29-3-1-6.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-10
"Incapacitated"
Sec. 10. As used in this chapter, "incapacitated" has the meaningset forth in IC 29-3-1-7.5.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-11
"Legal representative"
Sec. 11. As used in this chapter, "legal representative" means apersonal representative or guardian.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-12
"Member of the beneficiary's family"
Sec. 12. As used in this chapter, "member of the beneficiary'sfamily" means a beneficiary's spouse, descendant, stepchild, parent,stepparent, grandparent, brother, sister, uncle, or aunt, whether ofwhole or half blood or by adoption.As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-13
"Person"
Sec. 13. As used in this chapter, "person" means an individual,corporation, business trust, estate, trust, partnership, joint venture,association, or any other legal or commercial entity.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-14
"Personal representative"
Sec. 14. As used in this chapter, "personal representative" has themeaning set forth in IC 29-1-1-3.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-15
"State"
Sec. 15. As used in this chapter, "state" means a state, territory, orpossession of the United States, the District of Columbia, or theCommonwealth of Puerto Rico.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-16
"Transferor"
Sec. 16. As used in this chapter, "transferor" means a person whocreates a custodial trust by transfer or declaration.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-17
"Trust company"
Sec. 17. As used in this chapter, "trust company" means afinancial institution, corporation, or other legal entity authorized toexercise general trust powers.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-18
Creating a custodial trust
Sec. 18. (a) A person may create a custodial trust of property bya written transfer of the property to another person, evidenced byregistration of the property or by an instrument of transfer that:
(1) is executed in any lawful manner;
(2) names an individual as beneficiary who may be thetransferor; and
(3) in substance, designates the transferee to be the custodialtrustee of the property under this chapter.
(b) A person may create a custodial trust of property by a writtendeclaration evidenced by registration of the property or by anotherinstrument of declaration that:
(1) is executed in any lawful manner;
(2) describes the property; (3) names as beneficiary an individual other than the declarant;and
(4) in substance, designates the declarant, who is also thetitleholder of the property, to be the custodial trustee of theproperty under this chapter.
(c) A registration or other declaration of trust for the sole benefitof the declarant is not a custodial trust under this chapter.
(d) Title to custodial trust property is in the custodial trustee andthe beneficial interest is in the beneficiary.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-19
Terminating a custodial trust
Sec. 19. (a) Except as provided in subsection (b), a transferor maynot terminate a custodial trust.
(b) A custodial trust may be terminated by the beneficiary if thebeneficiary is not incapacitated. In order to terminate the trust, thebeneficiary must deliver to the custodial trustee a writing that:
(1) is signed by the beneficiary; and
(2) declares the termination of the custodial trust.
(c) If not previously terminated, a custodial trust terminates on thedeath of the beneficiary.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-20
Adding trust property
Sec. 20. A person may augment existing custodial trust propertyby the addition of other property under this chapter.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-21
Successor custodial trustee
Sec. 21. The transferor may:
(1) designate; or
(2) authorize the designation of;
a successor custodial trustee in the trust instrument.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-22
Creation and enforcement of trust under other law
Sec. 22. (a) This chapter does not supersede or restrict othermeans of creating trusts.
(b) A trust whose terms do not conform to this chapter may beenforceable according to the terms of the trust under another law.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-23
Custodial trust upon occurrence of future event
Sec. 23. (a) A person having the right to designate the recipient ofproperty payable or transferable upon a future event may create a
custodial trust upon the occurrence of the future event by designatingin writing the recipient, followed in substance by: "as custodialtrustee for _______________ (name of beneficiary) under theIndiana uniform custodial trust act".
(b) Persons may be designated as substitute or successor custodialtrustees to whom the property must be paid or transferred in the ordernamed if the first designated custodial trustee is unable or unwillingto serve.
(c) A designation under this section may be made by:
(1) making the designation in:
(A) a will;
(B) a trust;
(C) a deed;
(D) a multiple party account;
(E) an insurance policy;
(F) an instrument exercising a power of appointment; or
(G) a writing designating a beneficiary of contractual rights;or
(2) registering the designation with or delivering thedesignation to the fiduciary, payor, issuer, or obligor of thefuture right.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-24
Custodial trustee's acceptance of trust property
Sec. 24. (a) Obligations of a custodial trustee, including theobligation to follow directions of the beneficiary, arise under thischapter upon the custodial trustee's acceptance, express or implied,of the custodial trust property.
(b) The custodial trustee's acceptance may be evidenced by awriting stating in substance:
CUSTODIAL TRUSTEE'S RECEIPT AND ACCEPTANCE
I, _______________ (name of custodial trustee) acknowledgereceipt of the custodial trust property described below or in theattached instrument and accept the custodial trust as custodial trusteefor _______________ (name of beneficiary) under the Indianauniform custodial trust act. I undertake to administer and distributethe custodial trust property under the Indiana uniform custodial trustact. My obligations as custodial trustee are subject to the directionsof the beneficiary unless the beneficiary is designated as, is, orbecomes incapacitated. The custodial trust property consists of________________________________.
Dated:__________________________
________________________________
(Signature of Custodial Trustee)
(c) Upon accepting custodial trust property, a person designatedas custodial trustee under this chapter is subject to personaljurisdiction of the court with respect to any matter relating to thecustodial trust.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-25
Transfer for use and benefit of incapacitated individual
Sec. 25. (a) Unless otherwise directed by an instrumentdesignating a custodial trustee under section 23 of this chapter, aperson, including a fiduciary other than a custodial trustee, who:
(1) holds property of; or
(2) owes a debt to;
an incapacitated individual may make a transfer to an adult memberof the beneficiary's family or to a trust company as custodial trusteefor the use and benefit of the incapacitated individual. If the value ofthe property or the debt exceeds twenty thousand dollars ($20,000),the transfer is not effective unless authorized by the court.
(b) A written acknowledgment of delivery, signed by a custodialtrustee, is a sufficient receipt and discharge for property transferredto the custodial trustee under this section.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-26
Multiple beneficiaries
Sec. 26. (a) Beneficial interests in a custodial trust created formultiple beneficiaries are considered to be separate custodial trustsof equal undivided interests for each beneficiary. Except in a transferor declaration for use and benefit of husband and wife, for whomsurvivorship is presumed, a right of survivorship does not existunless the instrument creating the custodial trust specificallyprovides for survivorship.
(b) Custodial trust property held under this chapter by the samecustodial trustee for the use and benefit of the same beneficiary maybe administered as a single custodial trust.
(c) A custodial trustee of custodial trust property held for at leasttwo (2) beneficiaries shall separately account to each beneficiaryunder sections 27 and 35 of this chapter for the administration of thecustodial trust.
(d) The custodial trust property or the income from the custodialtrust property may not be subject to:
(1) anticipation;
(2) alienation;
(3) assignment;
(4) pledge;
(5) appointment; or
(6) any other voluntary or involuntary transfer;
before distribution by the custodial trustee. The custodial trustee maydisregard and defeat an attempt to violate the requirements of thissubsection.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-27
Custodial trustee's powers and duties
Sec. 27. (a) If appropriate, a custodial trustee shall register orrecord the instrument vesting title to custodial trust property. (b) If the beneficiary is not incapacitated, a custodial trustee shallfollow the directions of the beneficiary in the management, control,investment, or retention of the custodial trust property. In the absenceof effective contrary direction by the beneficiary while notincapacitated, the custodial trustee shall observe the standard of carethat would be observed by a prudent person dealing with property ofanother and is not limited by any other law restricting investments byfiduciaries. However, a custodial trustee, in the custodial trustee'sdiscretion, may retain any custodial trust property received from thetransferor. If a custodial trustee has a special skill or expertise or isnamed custodial trustee on the basis of representation of a specialskill or expertise, the custodial trustee shall use that skill orexpertise.
(c) Subject to subsection (b), a custodial trustee shall take controlof and collect, hold, manage, invest, and reinvest custodial trustproperty.
(d) A custodial trustee at all times shall keep custodial trustproperty of which the custodial trustee has control separate from allother property in a manner sufficient to identify it clearly as custodialtrust property of the beneficiary. Custodial trust property, the title towhich is subject to recordation, is so identified if an appropriateinstrument identifying the property is recorded, and custodial trustproperty subject to registration is identified if it is registered, or heldin an account in the name of the custodial trustee, designated insubstance: "as custodial trustee for _______________ (name ofbeneficiary) under the Indiana uniform custodial trust act".
(e) A custodial trustee shall keep records of all transactions withrespect to custodial trust property, including information necessaryfor the preparation of tax returns, and shall make the records andinformation available at reasonable times to the beneficiary or legalrepresentative of the beneficiary.
(f) The exercise of a durable power of attorney for anincapacitated beneficiary is not effective to terminate or direct theadministration or distribution of a custodial trust.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-28
Rights and powers
Sec. 28. (a) A custodial trustee acting in a fiduciary capacity hasall the rights and powers over custodial trust property which anunmarried adult owner has over individually owned property, but acustodial trustee may exercise those rights and powers in a fiduciarycapacity only.
(b) This section does not relieve a custodial trustee from liabilityfor a violation of section 27 of this chapter.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-29
Distribution of custodial trust property
Sec. 29. (a) If a beneficiary is not incapacitated, the custodial
trustee shall:
(1) pay to the beneficiary; or
(2) expend for the beneficiary's use and benefit;
so much or all of the custodial trust property as the beneficiary maydirect from time to time.
(b) If the beneficiary is incapacitated, the custodial trustee, in thecustodial trustee's sole discretion, may expend so much or all of thecustodial trust property as the custodial trustee considers advisablefor the use and benefit of:
(1) the beneficiary; and
(2) individuals who:
(A) were supported by the beneficiary when the beneficiarybecame incapacitated; or
(B) are legally entitled to support by the beneficiary.
(c) The custodial trustee may make expenditures:
(1) in the manner;
(2) when; and
(3) to the extent;
that the custodial trustee determines suitable and proper. Thecustodial trustee may make expenditures without court order andwithout regard to other support, income, or property of thebeneficiary.
(d) A custodial trustee may establish checking, savings, or othersimilar accounts of reasonable amounts under which:
(1) the custodial trustee; or
(2) the beneficiary;
may withdraw funds from, or draw checks against, the accounts.Funds withdrawn from, or checks written against, the account by thebeneficiary are distributions of custodial trust property by thecustodial trustee to the beneficiary.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-30
Administering custodial trust for incapacitated beneficiary
Sec. 30. (a) The custodial trustee shall administer the custodialtrust as for an incapacitated beneficiary if:
(1) the custodial trust was created under section 25 of thischapter;
(2) the transferor has so directed in the instrument creating thecustodial trust; or
(3) the custodial trustee has determined that the beneficiary isincapacitated.
(b) A custodial trustee may determine that the beneficiary isincapacitated in reliance upon:
(1) previous direction or authority given by the beneficiarywhile not incapacitated, including direction or authority undera durable power of attorney;
(2) the certificate of the beneficiary's physician; or
(3) other persuasive evidence.
(c) If a custodial trustee for an incapacitated beneficiary
reasonably concludes that:
(1) the beneficiary's incapacity has ceased; or
(2) circumstances concerning the beneficiary's ability to manageproperty and business affairs have changed since the creation ofa custodial trust directing administration as for an incapacitatedbeneficiary;
the custodial trustee may administer the trust as for a beneficiarywho is not incapacitated.
(d) Upon the petition of:
(1) the beneficiary;
(2) the custodial trustee; or
(3) another person interested in:
(A) the custodial trust property; or
(B) the welfare of the beneficiary;
the court shall determine whether the beneficiary is incapacitated.
(e) If:
(1) the custodial trustee or a court has not determined that abeneficiary is incapacitated under subsection (b) or (d); and
(2) the custodial trustee has reason to believe that thebeneficiary is incapacitated;
the custodial trustee shall administer the custodial trust in accordancewith the provisions of this chapter applicable to an incapacitatedbeneficiary.
(f) Incapacity of a beneficiary does not terminate:
(1) the custodial trust;
(2) any designation of a successor custodial trustee;
(3) rights or powers of the custodial trustee; or
(4) any immunities of third persons acting on the instructions ofthe custodial trustee.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-31
Reliance on person purporting to be custodial trustee
Sec. 31. (a) A third person in good faith and without a court ordermay act on instructions of, or otherwise deal with, a personpurporting to:
(1) make a transfer as; or
(2) act in the capacity of;
a custodial trustee.
(b) In the absence of knowledge to the contrary, a third persondescribed in subsection (a) is not responsible for determining:
(1) the validity of the purported custodial trustee's designation;
(2) the propriety of, or the authority under this chapter for, anyaction of the purported custodial trustee;
(3) the validity or propriety of an instrument executed orinstruction given under this chapter by:
(A) the person purporting to make a transfer or declaration;or
(B) the purported custodial trustee; or
(4) the propriety of the application of property vested in the
purported custodial trustee.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-32
Claim by third person against custodial trustee
Sec. 32. (a) A claim based on:
(1) a contract entered into by a custodial trustee acting in afiduciary capacity;
(2) an obligation arising from the ownership or control ofcustodial trust property; or
(3) a tort committed in the course of administering the custodialtrust;
may be asserted by a third person against the custodial trust propertyby proceeding against the custodial trustee in a fiduciary capacity,whether or not the custodial trustee or the beneficiary is personallyliable.
(b) A custodial trustee is not personally liable to a third person ona contract properly entered into in a fiduciary capacity unless thecustodial trustee fails to:
(1) reveal that capacity; or
(2) identify the custodial trust in the contract.
(c) Unless a custodial trustee is personally at fault, a custodialtrustee is not liable to a third person for:
(1) an obligation arising from control of custodial trustproperty; or
(2) a tort committed in the course of the administration of thecustodial trust.
(d) A beneficiary is not personally liable to a third person for:
(1) an obligation arising from beneficial ownership of custodialtrust property; or
(2) a tort committed in the course of administration of thecustodial trust;
unless the beneficiary is personally in possession of the custodialtrust property giving rise to the liability or is personally at fault.
(e) Subsections (b) and (c) do not preclude actions or proceedingsto establish liability of the custodial trustee or beneficiary to theextent the person sued is protected as the insured by liabilityinsurance.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-33
Resigning or declining to serve as custodial trustee
Sec. 33. (a) Before accepting the custodial trust property, a persondesignated as custodial trustee may decline to serve as custodialtrustee by notifying:
(1) the person who made the designation;
(2) the transferor; or
(3) the transferor's legal representative.
(b) If the person designated to serve as custodial trustee declinesto serve under subsection (a), and an event giving rise to a transfer
has not occurred:
(1) the substitute custodial trustee designated under section 23of this chapter becomes the custodial trustee; or
(2) if a substitute custodial trustee has not been designated:
(A) the person who made the designation may designate asubstitute custodial trustee under section 23 of this chapter;or
(B) the transferor or the transferor's legal representative maydesignate a substitute custodial trustee.
(c) A custodial trustee who has accepted the custodial trustproperty may resign by:
(1) delivering written notice of resignation to:
(A) a successor custodial trustee, if any;
(B) the beneficiary; and
(C) if the beneficiary is incapacitated, the beneficiary'sguardian, if any;
(2) transferring, registering, or recording an appropriateinstrument relating to the custodial trust property in the name ofthe successor custodial trustee identified under subsection (d);and
(3) delivering the records to the successor trustee identifiedunder subsection (d).
(d) If a custodial trustee or successor custodial trustee isineligible, resigns, dies, or becomes incapacitated, the successordesignated under section 21 or 23 of this chapter becomes custodialtrustee. If there is no effective provision for a successor:
(1) the beneficiary, if not incapacitated, may designate asuccessor custodial trustee; or
(2) if the beneficiary is incapacitated, or fails to act withinninety (90) days after the ineligibility, resignation, death, orincapacity of the custodial trustee:
(A) the beneficiary's guardian becomes successor custodialtrustee; or
(B) if the beneficiary does not have a guardian or theguardian fails to act, the resigning custodial trustee maydesignate a successor custodial trustee.
(e) If a successor custodial trustee is not designated undersubsection (d), any of the following may petition the court todesignate a successor custodial trustee:
(1) The transferor.
(2) The legal representative of the transferor.
(3) The legal representative of the custodial trustee.
(4) An adult member of the beneficiary's family.
(5) The guardian of the beneficiary.
(6) A person interested in the custodial trust property.
(7) A person interested in the welfare of the beneficiary.
(f) A custodial trustee who declines to serve or resigns, or thelegal representative of a deceased or incapacitated custodial trustee,as soon as practicable, shall put the custodial trust property andrecords in the possession and control of the successor custodial
trustee. The successor custodial trustee may enforce the obligationto deliver custodial trust property and records and becomesresponsible for each item as received.
(g) A beneficiary, an adult member of the beneficiary's family, aguardian of the person of the beneficiary, a person interested in thecustodial trust property, or a person interested in the welfare of thebeneficiary, may petition the court:
(1) to remove the custodial trustee for cause and designate asuccessor custodial trustee;
(2) to require the custodial trustee to furnish a bond or othersecurity for the faithful performance of fiduciary duties; or
(3) for other appropriate relief.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-34
Compensation of custodial trustee
Sec. 34. Except as otherwise provided in the instrument creatingthe custodial trust, in an agreement with the beneficiary, or by courtorder, a custodial trustee:
(1) is entitled to reimbursement from custodial trust property forreasonable expenses incurred in the performance of fiduciaryservices;
(2) has a noncumulative election, to be made not later than six(6) months after the end of each calendar year, to charge areasonable compensation for fiduciary services performedduring that year; and
(3) need not furnish a bond or other security for the faithfulperformance of fiduciary duties.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-35
Written statement of trust administration; petition for accounting
Sec. 35. (a) Upon the acceptance of custodial trust property, thecustodial trustee shall provide a written statement describing thecustodial trust property. The custodial trustee shall provide a writtenstatement of the administration of the custodial trust property:
(1) once each year;
(2) upon request at reasonable times by the beneficiary or thebeneficiary's legal representative;
(3) upon resignation or removal of the custodial trustee; and
(4) upon termination of the custodial trust.
The statements described by this section must be provided to thebeneficiary or to the beneficiary's legal representative, if any. Upontermination of the beneficiary's interest, the custodial trustee shallfurnish a current statement to the person to whom the custodial trustproperty is to be delivered.
(b) The following may petition the court for an accounting by thecustodial trustee or the custodial trustee's legal representative:
(1) A beneficiary.
(2) The beneficiary's legal representative. (3) An adult member of the beneficiary's family.
(4) A person interested in the custodial trust property.
(5) A person interested in the welfare of the beneficiary.
(c) A successor custodial trustee may petition the court for anaccounting by a predecessor custodial trustee.
(d) In an action or proceeding under this chapter or in any otherproceeding, the court may require or permit the custodial trustee orthe custodial trustee's legal representative to account. The custodialtrustee or the custodial trustee's legal representative may petition thecourt for approval of final accounts.
(e) If a custodial trustee is removed, the court shall:
(1) require an accounting;
(2) order delivery of the custodial trust property and records tothe successor custodial trustee; and
(3) order the execution of all instruments required for transferof the custodial trust property.
(f) On petition of the custodial trustee or any person who couldpetition for an accounting, the court, after notice to interestedpersons, may:
(1) issue instructions to the custodial trustee;
(2) review the propriety of the acts of a custodial trustee; or
(3) review the reasonableness of compensation determined bythe custodial trustee for the services of the custodial trustee orothers.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-36
Claim against custodial trustee's claim barred against other parties
Sec. 36. (a) Except as provided in subsection (c), and unlesspreviously barred by adjudication, consent, or limitation, a claim forrelief against a custodial trustee for accounting or breach of duty isbarred as to a beneficiary, a person to whom custodial trust propertyis to be paid or delivered, or the legal representative of anincapacitated or deceased beneficiary or payee:
(1) who has received a final account or statement fullydisclosing the matter, unless an action or proceeding to assertthe claim is commenced not later than two (2) years afterreceipt of the final account or statement; or
(2) who has not received a final account or statement fullydisclosing the matter, unless an action or proceeding to assertthe claim is commenced not later than three (3) years after thetermination of the custodial trust.
(b) Except as provided in subsection (c), a claim for relief torecover from a custodial trustee for fraud, misrepresentation, orconcealment related to the final settlement of the custodial trust orconcealment of the existence of the custodial trust is barred unless anaction or proceeding to assert the claim is commenced not later thanfive (5) years after the termination of the custodial trust.
(c) The limitations on a claim for relief are as follows:
(1) If the claimant is a minor, the claim is barred unless an
action or proceeding to assert the claim is commenced beforethe earlier of the following:
(A) Two (2) years after the claimant becomes an adult.
(B) Two (2) years after the claimant dies.
(2) If the claimant is an incapacitated adult, the claim is barredunless an action or proceeding to assert the claim is commencedbefore the earliest of the following:
(A) Two (2) years after the appointment of a guardian forclaimant.
(B) Two (2) years after the removal of the incapacity.
(C) Two (2) years after the death of the claimant.
(3) If the claimant:
(A) was an adult;
(B) is deceased; and
(C) was not incapacitated;
the claim is barred unless an action or proceeding to assert theclaim is commenced not later than two (2) years after theclaimant's death.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-37
Termination of a custodial trust
Sec. 37. (a) Upon termination of a custodial trust, the custodialtrustee shall transfer the unexpended custodial trust property:
(1) to the beneficiary, if not incapacitated or deceased;
(2) to the guardian or other recipient designated by the court foran incapacitated beneficiary; or
(3) upon the beneficiary's death, in the following order:
(A) as last directed in a writing:
(i) signed by the deceased beneficiary while notincapacitated; and
(ii) received by the custodial trustee during the life of thedeceased beneficiary;
(B) to the survivor of multiple beneficiaries if survivorshipis provided for under section 26 of this chapter;
(C) as designated in the instrument creating the custodialtrust; or
(D) to the estate of the deceased beneficiary.
(b) If, when the custodial trust would otherwise terminate, thedistributee is incapacitated, the custodial trust continues for the useand benefit of the distributee as beneficiary until the incapacity isremoved or the custodial trust is otherwise terminated.
(c) Death of a beneficiary does not terminate the power of thecustodial trustee to discharge obligations of the custodial trustee orbeneficiary incurred before the termination of the custodial trust.
As added by P.L.3-2003, SEC.1.
IC 30-2-8.6-38
Creating a custodial trust
Sec. 38. (a) If a transaction, including a declaration with respect
to or a transfer of specific property, otherwise satisfies applicablelaw, the criteria of section 18 of this chapter are satisfied by either ofthe following:
(1) The execution and either delivery to the custodial trustee orrecording of an instrument in substantially the following form:
TRANSFER UNDER THE
INDIANA UNIFORM CUSTODIAL TRUST ACT
I, _______________ (name of transferor or name andrepresentative capacity if a fiduciary), transfer to _______________(name of trustee other than transferor), as custodial trustee for_______________ (name of beneficiary) as beneficiary and______________ as distributee on termination of the trust in absenceof direction by the beneficiary under the Indiana uniform custodialtrust act, the following: (insert a description of the custodial trustproperty legally sufficient to identify and transfer each item ofproperty).
Dated: _______________________
______________________________
(Signature)
(2) The execution and the recording or giving notice of itsexecution to the beneficiary of an instrument in substantiallythe following form:
DECLARATION OF TRUST UNDER THE
INDIANA UNIFORM CUSTODIAL TRUST ACT
I, _______________ (name of owner of property), declare thathenceforth I hold as custodial trustee for _______________ (nameof beneficiary other than transferor) as beneficiary and_______________ as distributee on termination of the trust inabsence of direction by the beneficiary under the Indiana uniformcustodial trust act, the following: (Insert a description of thecustodial trust property legally sufficient to identify and transfer eachitem of property).
Dated: _______________________
______________________________
(Signature)
(b) Customary methods of transferring or evidencing ownershipof property may be used to create a custodial trust, including any ofthe following:
(1) Registration of a security in the name of:
(A) a trust company;
(B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than thetransferor;
designated in substance "as custodial trustee for_______________ (name of beneficiary) under the Indianauniform custodial trust act".
(2) Delivery of:
(A) a certificated security, or a document necessary for thetransfer of an uncertificated security; and
(B) any necessary endorsement; to an adult other than the transferor or to a trust company ascustodial trustee, accompanied by an instrument in substantiallythe form prescribed in subsection (a)(1).
(3) Payment of money or transfer of a security held in the nameof a broker or a financial institution or its nominee to a brokeror financial institution for credit to an account in the name of:
(A) a trust company;
(B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than thetransferor;
designated in substance: "as custodial trustee for_______________ (name of beneficiary) under the Indianauniform custodial trust act".
(4) Registration of ownership of a life or endowment insurancepolicy or annuity contract with the issuer in the name of:
(A) a trust company;
(B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than thetransferor;
designated in substance: "as custodial trustee for_______________ (name of beneficiary) under the Indianauniform custodial trust act".
(5) Delivery of a written assignment to:
(A) an adult other than the transferor; or
(B) a trust company;
whose name in the assignment is designated in substance by thewords: "as custodial trustee for _______________ (name ofbeneficiary) under the Indiana uniform custodial trust act".
(6) Irrevocable exercise of a power of appointment, pursuant toits terms, in favor of:
(A) a trust company;
(B) an adult other than the donee of the power; or
(C) the donee who holds the power if the beneficiary is otherthan the donee;
whose name in the appointment is designated in substance: "ascustodial trustee for _______________ (name of beneficiary)under the Indiana uniform custodial trust act".
(7) Delivery of a written notification or assignment of a right tofuture payment under a contract to an obligor that transfers theright under the contract to:
(A) a trust company;
(B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than thetransferor;
whose name in the notification or assignment is designated insubstance: "as custodial trustee for _______________ (name ofbeneficiary) under the Indiana uniform custodial trust act".
(8) Execution, delivery, and recordation of a conveyance of aninterest in real property in the name of:
(A) a trust company; (B) an adult other than the transferor; or
(C) the transferor if the beneficiary is other than thetransferor;
designated in substance: "as custodial trustee for_______________ (name of beneficiary) under the Indianauniform custodial trust act".
(9) Issuance of a certificate of title by an agency of a state or ofthe United States that evidences title to tangible personalproperty:
(A) issued in the name of:
(i) a trust company;
(ii) an adult other than the transferor; or
(iii) the transferor if the beneficiary is other than thetransferor;
designated in substance: "as custodial trustee for_______________ (name of beneficiary) under the Indianauniform custodial trust act"; or
(B) delivered to:
(i) a trust company; or
(ii) an adult other than the transferor or endorsed by thetransferor to that person;
designated in substance: "as custodial trustee for_______________ (name of beneficiary) under the Indianauniform custodial trust act".
(10) Execution and delivery of an instrument of gift to:
(A) a trust company; or
(B) an adult other than the transferor;
designated in substance: "as custodial trustee for_______________ (name of beneficiary) under the Indianauniform custodial trust act".
As added by P.L.3-2003, SEC.1. Amended by P.L.97-2004, SEC.103.
IC 30-2-8.6-39
Severability
Sec. 39. The provisions of this chapter are severable in the mannerprovided by IC 1-1-1-8(b).
As added by P.L.3-2003, SEC.1.