Introduced By: Representatives Williamson, Murphy and Flaherty
Date Introduced : February 3, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 18-7-2, 18-7-10 and 18-7-21 of the General Laws in Chapter 18-7 entitled "Uniform Transfers to Minors Act" is hereby amended to read as follows:
18-7-2. Definitions. -- In this chapter, unless the context otherwise requires:
(1) "Adult" means an individual who has attained the
age of {DEL eighteen (18) DEL} {ADD twenty-one (21) ADD} years
.
(2) "Benefit plan" means an employer's plan for the benefit of an employee or partner.
(3) "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.
(4) "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.
(5) "Court" means probate court.
(6) "Custodial property" means: (i) any interest in property transferred to a custodian under this chapter, and (ii) the income from and proceeds of that interest in property.
(7) "Custodian" means a person so designated under section 18-7-10 or a successor or substitute custodian designated under section 18-7-19.
(8) "Financial institution" means a bank, trust company, savings institution, or credit union, chartered and supervised under state or federal law.
(9) "Legal representative" means an individual's personal representative or conservator.
(10) "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.
(11) "Minor" means an individual who has not attained
the age of {DEL eighteen (18) DEL} {ADD twenty-one (21) ADD}
years.
(12) "Person" means an individual, corporation, organization, or other legal entity.
(13) "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.
(14) "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.
(15) "Transfer" means a transaction that creates custodial property under section 18-7-10.
(16) "Transferor" means a person who makes a transfer under this chapter.
(17) "Trust company" means a financial institution, corporation, or other legal entity, authorized to exercise general trust powers.
18-7-10. Manner of creating custodial property and effecting transfer -- Designation of initial custodian -- Control. -- (a) Custodial property is created and a transfer is made whenever:
(1) An uncertificated security or a certificated security in registered form is either:(i) 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 Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18"; or (ii) 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 subsection (b); (2) Money is paid or delivered{ADD, or a security held in the name of a broker, financial institution, or its nominee is transferred,ADD} 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 Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18"; (3) The ownership of a life or endowment insurance policy or annuity contract is either: (i) 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 Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18"; (ii) 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 Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18"; (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 Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18"; (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 Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18"; (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: (i) Issued in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by words: "as custodian for ________________________ (name of minor) under the Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18"; or (ii) 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 Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18"; or (7) An interest in any property not described in subdivisions (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 subsection (b). (b) An instrument in the following form satisfies the requirements of subdivisions (1)(ii) and (7) of subsection (a): TRANSFER UNDER THE RHODE ISLAND UNIFORM TRANSFERS TO MINORS ACT I, ________________________________ (name of transferor or name of representative capacity if a fiduciary), hereby transfer to _____________ (name of custodian), as custodian for ______________ (name of minor) under the Rhode Island Uniform Transfers to Minors Act, chapter 7 of title 18, the following: ________________ (insert a description of the custodial property sufficient to identify it). Dated: ______________________________ __________________________________________________ (Signature) ____________________________________ (name of custodian) acknowledges receipt of the property described above as custodian for the minor named above under the Rhode Island 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.
18-7-21. Termination of custodianship. -- The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of:
(1) The minor's attainment of {DEL eighteen (18) DEL} {ADD twenty-one
(21) ADD} years of age {ADD with respect to custodial property
transferred under section 5 or 6 ADD}; {DEL or DEL}
(2) {ADD The minor's attainment of eighteen (18) years of age with respect to custodial property transferred under sections 7 or 8; or ADD}
{ADD (3) ADD} The minor's death.
SECTION 2. This act shall take effect upon passage.
