Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 476-S.F.No. 354 
           An act relating to trusts; permitting the creation of 
          custodial trusts; adopting the uniform custodial trust 
          act; proposing coding for new law as Minnesota 
          Statutes, chapter 529. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [529.01] [DEFINITIONS.] 
    As used in this act: 
    (1) "Adult" means an individual who is at least 18 years of 
age. 
    (2) "Beneficiary" means an individual for whom property has 
been transferred to or held under a declaration of trust by a 
custodial trustee for the individual's use and benefit under 
this act. 
    (3) "Conservator" means a person appointed or qualified by 
a court to manage the estate of an individual or a person 
legally authorized to perform substantially the same functions. 
    (4) "Court" means the district court of this state. 
    (5) "Custodial trust property" means an interest in 
property transferred to or held under a declaration of trust by 
a custodial trustee under this act and the income from and 
proceeds of that interest.  
    (6) "Custodial trustee" means a person designated as 
trustee of a custodial trust under this act or a substitute or 
successor to the person designated. 
    (7) "Guardian" means a person appointed or qualified by a 
court as a guardian of an individual, including a limited 
guardian, but not a person who is only a guardian ad litem. 
    (8) "Holder of the beneficiary's power of attorney" means a 
person who is a holder of the beneficiary's unrevoked power of 
attorney if the document creating the power of attorney grants 
powers similar or identical to those defined as "beneficiary 
transactions" in section 523.24, subdivision 7. 
    (9) "Incapacitated" means lacking the ability to manage 
property and business affairs effectively by reason of mental 
illness, mental retardation, physical illness or disability, 
chronic use of drugs, chronic intoxication, confinement, 
detention by a foreign power, disappearance, minority, or other 
disabling cause. 
    (10) "Legal representative" means a personal representative 
or conservator. 
    (11) "Member of the beneficiary's family" means a 
beneficiary's spouse, descendant, stepchild, parent, stepparent, 
grandparent, brother, sister, uncle, or aunt, whether of the 
whole or half blood or by adoption. 
    (12) "Person" means an individual, corporation, business 
trust, estate, trust, partnership, joint venture, association, 
or any other legal or commercial entity. 
    (13) "Personal representative" means an executor, 
administrator, or special administrator of a decedent's estate, 
a person legally authorized to perform substantially the same 
functions, or a successor to any of them. 
    (14) "State" means a state, territory, or possession of the 
United States, the District of Columbia, or the commonwealth of 
Puerto Rico. 
    (15) "Transferor" means a person who creates a custodial 
trust by transfer or declaration. 
    (16) "Trust company" means a financial institution, 
corporation, or other legal entity, authorized to exercise 
general trust powers. 
    Sec. 2.  [529.02] [CUSTODIAL TRUST; GENERAL.] 
    (a) A person may create a custodial trust of property by a 
written transfer of the property to another person, evidenced by 
registration or by other instrument of transfer, executed in any 
lawful manner, naming as beneficiary, an individual who may be 
the transferor, in which the transferee is designated, in 
substance, as custodial trustee under the Minnesota uniform 
custodial trust act. 
    (b) A person may create a custodial trust of property by a 
written declaration, evidenced by registration of the property 
or by other instrument of declaration executed in any lawful 
manner, describing the property and naming as beneficiary an 
individual other than the declarant, in which the declarant as 
title holder is designated, in substance, as custodial trustee 
under the Minnesota uniform custodial trust act.  A registration 
or other declaration of trust for the sole benefit of the 
declarant is not a custodial trust under this act. 
    (c) Title to custodial trust property is in the custodial 
trustee and the beneficial interest is in the beneficiary. 
    (d) Except as provided in subsection (e), a transferor may 
not terminate a custodial trust. 
    (e) The beneficiary, if not incapacitated, or the holder of 
the beneficiary's power of attorney, may terminate a custodial 
trust by delivering to the custodial trustee a writing signed by 
the beneficiary or holder of the beneficiary's power of attorney 
declaring the termination.  If not previously terminated, the 
custodial trust terminates on the death of the beneficiary.  
    (f) Any person may augment existing custodial trust 
property by the addition of other property pursuant to this act. 
    (g) The transferor may designate, or authorize the 
designation of, a successor custodial trustee in the trust 
instrument. 
    (h) This act does not displace or restrict other means of 
creating trusts.  A trust whose terms do not conform to this act 
may be enforceable according to its terms under other law. 
    Sec. 3.  [529.03] [CUSTODIAL TRUSTEE FOR FUTURE PAYMENT OR 
TRANSFER.] 
    (a) A person having the right to designate the recipient of 
property payable or transferable upon a future event may create 
a custodial trust upon the occurrence of the future event by 
designating in writing the recipient, followed in substance by:  
"as custodial trustee for ......... (name of beneficiary) under 
the Minnesota uniform custodial trust act." 
    (b) Persons may be designated as substitute or successor 
custodial trustees to whom the property must be paid or 
transferred in the order named if the first designated custodial 
trustee is unable or unwilling to serve. 
    (c) A designation under this section may be made in a will, 
a trust, a deed, a multiple-party account, an insurance policy, 
an instrument exercising a power of appointment, or a writing 
designating a beneficiary of contractual rights.  Otherwise, to 
be effective, the designation must be registered with or 
delivered to the fiduciary, payor, issuer, or obligor of the 
future right. 
    Sec. 4.  [529.04] [FORM AND EFFECT OF RECEIPT AND 
ACCEPTANCE BY CUSTODIAL TRUSTEE, JURISDICTION.] 
    (a) Obligations of a custodial trustee, including the 
obligation to follow directions of the beneficiary, arise under 
this act upon the custodial trustee's acceptance, express or 
implied, of the custodial trust property. 
    (b) The custodial trustee's acceptance may be evidenced by 
a writing stating in substance: 
 CUSTODIAL TRUSTEE'S RECEIPT AND ACCEPTANCE 
    I, ........ (name of custodial trustee) acknowledge receipt 
of the custodial trust property described below or in the 
attached instrument and accept the custodial trust as custodial 
trustee for ....... (name of beneficiary) under the Minnesota 
uniform custodial trust act.  I undertake to administer and 
distribute the custodial trust property pursuant to the 
Minnesota uniform custodial trust act.  My obligations as 
custodial trustee are subject to the directions of the 
beneficiary unless the beneficiary is designated as, is, or 
becomes incapacitated.  The custodial trust property consists of 
........................ 
Dated: ................. 
........................ 
(signature of custodial trustee) 
    (c) Upon accepting custodial trust property, a person 
designated as custodial trustee under this act is subject to 
personal jurisdiction of the court with respect to any matter 
relating to the custodial trust. 
    Sec. 5.  [529.05] [MULTIPLE BENEFICIARIES; SEPARATE 
CUSTODIAL TRUSTS; SURVIVORSHIP.] 
    (a) Beneficial interests in a custodial trust created for 
multiple beneficiaries are deemed to be separate custodial 
trusts of equal undivided interests for each beneficiary.  
Except in a transfer or declaration for use and benefit of 
husband and wife, for whom survivorship is presumed, a right of 
survivorship does not exist unless the instrument creating the 
custodial trust specifically provides for survivorship or 
survivorship is required as to community or marital property. 
    (b) Custodial trust property held under this act by the 
same custodial trustee for the use and benefit of the same 
beneficiary may be administered as a single custodial trust. 
    (c) A custodial trustee of custodial trust property held 
for more than one beneficiary shall separately account to each 
beneficiary pursuant to sections 6 and 14 for the administration 
of the custodial trust. 
    Sec. 6.  [529.06] [GENERAL DUTIES OF CUSTODIAL TRUSTEE.] 
    (a) If appropriate, a custodial trustee shall register or 
record the instrument vesting title to custodial trust property. 
    (b) If the beneficiary is not incapacitated, a custodial 
trustee shall follow the directions of the beneficiary in the 
management, control, investment, or retention of the custodial 
trust property.  In the absence of effective contrary direction 
by the beneficiary while not incapacitated, the custodial 
trustee shall observe the standard of care set forth in section 
501B.10.  However, a custodial trustee, in the custodial 
trustee's discretion, may retain any custodial trust property 
received from the transferor. 
    (c) Subject to subsection (b), a custodial trustee shall 
take control of and collect, hold, manage, invest, and reinvest 
custodial trust property. 
    (d) A custodial trustee at all times shall keep custodial 
trust property of which the custodial trustee has control, 
separate from all other property in a manner sufficient to 
identify it clearly as custodial trust property of the 
beneficiary.  Custodial trust property, the title to which is 
subject to recordation, is so identified if an appropriate 
instrument so identifying the property is recorded, and 
custodial trust property subject to registration is so 
identified if it is registered, or held in an account in the 
name of the custodial trustee, designated in substance:  "as 
custodial trustee for ........ (name of beneficiary) under the 
Minnesota uniform custodial trust act." 
    (e) A custodial trustee shall keep records of all 
transactions with respect to custodial trust property, including 
information necessary for the preparation of tax returns, and 
shall make the records and information available at reasonable 
times to the beneficiary or legal representative of the 
beneficiary. 
    Sec. 7.  [529.07] [GENERAL POWERS OF CUSTODIAL TRUSTEE.] 
    (a) A custodial trustee, acting in a fiduciary capacity, 
has all the rights and powers over custodial trust property 
which an unmarried adult owner has over individually owned 
property, but a custodial trustee may exercise those rights and 
powers in a fiduciary capacity only. 
    (b) This section does not relieve a custodial trustee from 
liability for a violation of section 6. 
    Sec. 8.  [529.08] [USE OF CUSTODIAL TRUST PROPERTY.] 
    (a) A custodial trustee shall pay to the beneficiary or 
expend for the beneficiary's use and benefit so much or all of 
the custodial trust property as the beneficiary while not 
incapacitated may direct from time to time. 
    (b) If the beneficiary is incapacitated, the custodial 
trustee shall expend so much or all of the custodial trust 
property as the custodial trustee considers advisable for the 
use and benefit of the beneficiary and individuals who were 
supported by the beneficiary when the beneficiary became 
incapacitated, or who are legally entitled to support by the 
beneficiary.  Expenditures may be made in the manner, when, and 
to the extent that the custodial trustee determines suitable and 
proper, without court order and without regard to other support, 
income, or property of the beneficiary. 
    (c) A custodial trustee may establish checking, savings, or 
other similar accounts of reasonable amounts under which either 
the custodial trustee or the beneficiary may withdraw funds 
from, or draw checks against, the accounts.  Funds withdrawn 
from, or checks written against, the account by the beneficiary 
are distributions of custodial trust property by the custodial 
trustee to the beneficiary. 
    Sec. 9.  [529.09] [DETERMINATION OF INCAPACITY; EFFECT.] 
     (a) The custodial trustee shall administer the custodial 
trust as for an incapacitated beneficiary if (i) the transferor 
has so directed in the instrument creating the custodial trust, 
or (ii) the custodial trustee has determined that the 
beneficiary is incapacitated. 
    (b) A custodial trustee may determine that the beneficiary 
is incapacitated in reliance upon (i) previous direction or 
authority given by the beneficiary while not incapacitated, 
including direction or authority pursuant to a durable power of 
attorney, (ii) the certificate of the beneficiary's physician, 
or (iii) other persuasive evidence. 
    (c) If a custodial trustee for an incapacitated beneficiary 
reasonably concludes that the beneficiary's incapacity has 
ceased, or that circumstances concerning the beneficiary's 
ability to manage property and business affairs have changed 
since the creation of a custodial trust directing administration 
as for an incapacitated beneficiary, the custodial trustee must 
administer the trust as for a beneficiary who is not 
incapacitated. 
    (d) On petition of the beneficiary, the custodial trustee, 
or other person interested in the custodial trust property or 
the welfare of the beneficiary, the court shall determine 
whether the beneficiary is incapacitated. 
    (e) Absent determination of incapacity of the beneficiary 
under subsection (b) or (d), a custodial trustee who has reason 
to believe that the beneficiary is incapacitated shall 
administer the custodial trust in accordance with the provisions 
of this act applicable to an incapacitated beneficiary. 
    (f) Incapacity of a beneficiary does not terminate (i) the 
custodial trust, (ii) any designation of a successor custodial 
trustee, (iii) rights or powers of the custodial trustee, or 
(iv) any immunities of third persons acting on instructions of 
the custodial trustee. 
    Sec. 10.  [529.10] [EXEMPTION OF THIRD PERSON FROM 
LIABILITY.] 
    A third person in good faith and without a court order may 
act on instructions of, or otherwise deal with, a person 
purporting to make a transfer as, or purporting to act in the 
capacity of, a custodial trustee.  In the absence of knowledge 
to the contrary, the third person is not responsible for 
determining: 
    (1) the validity of the purported custodial trustee's 
designation; 
    (2) the propriety of, or the authority under this act for, 
any action of the purported custodial trustee; 
    (3) the validity or propriety of an instrument executed or 
instruction given pursuant to this act either by the person 
purporting to make a transfer or declaration or by the purported 
custodial trustee; or 
    (4) the propriety of the application of property vested in 
the purported custodial trustee. 
    Sec. 11.  [529.11] [LIABILITY TO THIRD PERSON.] 
    (a) A claim based on a contract entered into by a custodial 
trustee acting in a fiduciary capacity, an obligation arising 
from the ownership or control of custodial trust property, or a 
tort committed in the course of administering the custodial 
trust, may be asserted by a third person against the custodial 
trust property by proceeding against the custodial trustee in a 
fiduciary capacity, whether or not the custodial trustee or the 
beneficiary is personally liable. 
    (b) A custodial trustee is not personally liable to a third 
person: 
    (1) on a contract properly entered into in a fiduciary 
capacity unless the custodial trustee fails to reveal that 
capacity or to identify the custodial trust in the contract; or 
    (2) for an obligation arising from control of custodial 
trust property or for a tort committed in the course of the 
administration of the custodial trust unless the custodial 
trustee is personally at fault.  
    (c) A beneficiary is not personally liable to a third 
person for an obligation arising from beneficial ownership of 
custodial trust property or for a tort committed in the course 
of administration of the custodial trust unless the beneficiary 
is personally in possession of the custodial trust property 
giving rise to the liability or is personally at fault. 
    (d) Subsections (b) and (c) do not preclude actions or 
proceedings to establish liability of the custodial trustee or 
beneficiary to the extent the person sued is protected as the 
insured by liability insurance. 
    Sec. 12.  [529.12] [DECLINATION, RESIGNATION, INCAPACITY, 
DEATH, OR REMOVAL OF CUSTODIAL TRUSTEE; DESIGNATION OF SUCCESSOR 
CUSTODIAL TRUSTEE.] 
    (a) Before accepting the custodial trust property, a person 
designated as custodial trustee may decline to serve by 
notifying the person who made the designation, the transferor, 
or the transferor's legal representative.  If an event giving 
rise to a transfer has not occurred, the substitute custodial 
trustee designated under section 3 becomes the custodial 
trustee, or, if a substitute custodial trustee has not been 
designated, the person who made the designation may designate a 
substitute custodial trustee pursuant to section 3.  In other 
cases, the transferor or the transferor's legal representative 
may designate a substitute custodial trustee. 
    (b) A custodial trustee who has accepted the custodial 
trust property may resign by (i) delivering written notice to a 
successor custodial trustee, if any, the beneficiary and, if the 
beneficiary is incapacitated, to the beneficiary's conservator, 
if any, and (ii) transferring or registering, or recording an 
appropriate instrument relating to, the custodial trust 
property, in the name of, and delivering the records to, the 
successor custodial trustee identified under subsection (c). 
    (c) If a custodial trustee or successor custodial trustee 
is ineligible, resigns, dies, or becomes incapacitated, the 
successor designated under section 2, subsection (g), or 3 
becomes custodial trustee.  If there is no effective provision 
for a successor, the beneficiary, if not incapacitated, or the 
holder of the beneficiary's power of attorney, may designate a 
successor custodial trustee. 
    (d) If a successor custodial trustee is not designated 
pursuant to subsection (c), the transferor, the legal 
representative of the transferor or of the custodial trustee, an 
adult member of the beneficiary's family, the conservator of the 
beneficiary, a person interested in the custodial trust 
property, or a person interested in the welfare of the 
beneficiary, may petition the court to designate a successor 
custodial trustee in accordance with the procedures set forth in 
sections 501B.16 to 501B.25. 
    (e) A custodial trustee who declines to serve or resigns, 
or the legal representative of a deceased or incapacitated 
custodial trustee, as soon as practicable, shall put the 
custodial trust property and records in the possession and 
control of the successor custodial trustee.  The successor 
custodial trustee may enforce the obligation to deliver 
custodial trust property and records and becomes responsible for 
each item as received. 
    (f) A beneficiary, the beneficiary's conservator, an adult 
member of the beneficiary's family, a guardian of the person of 
the beneficiary, a person interested in the custodial trust 
property, or a person interested in the welfare of the 
beneficiary, may petition the court to remove the custodial 
trustee for cause and designate a successor custodial trustee, 
to require the custodial trustee to furnish a bond or other 
security for the faithful performance of fiduciary duties, or 
for other appropriate relief. 
    Sec. 13.  [529.13] [EXPENSES, COMPENSATION, AND BOND OF 
CUSTODIAL TRUSTEE.] 
    Except as otherwise provided in the instrument creating the 
custodial trust, in an agreement with the beneficiary, or by 
court order, a custodial trustee: 
    (1) is entitled to reimbursement from custodial trust 
property for reasonable expenses incurred in the performance of 
fiduciary services; 
    (2) has a noncumulative election, to be made no later than 
six months after the end of each calendar year, to charge a 
reasonable compensation for fiduciary services performed during 
that year; and 
    (3) need not furnish a bond or other security for the 
faithful performance of fiduciary duties. 
    Sec. 14.  [529.14] [REPORTING AND ACCOUNTING BY CUSTODIAL 
TRUSTEE; DETERMINATION OF LIABILITY OF CUSTODIAL TRUSTEE.] 
     (a) Upon the acceptance of custodial trust property, the 
custodial trustee shall provide a written statement describing 
the custodial trust property and shall thereafter provide a 
written statement of the administration of the custodial trust 
property (i) once each year, (ii) upon request at reasonable 
times by the beneficiary or the beneficiary's legal 
representative, (iii) upon resignation or removal of the 
custodial trustee, and (iv) upon termination of the custodial 
trust.  The statements must be provided to the beneficiary or to 
the beneficiary's legal representative, if any.  Upon 
termination of the beneficiary's interest, the custodial trustee 
shall furnish a current statement to the person to whom the 
custodial trust property is to be delivered. 
    (b) A beneficiary, the beneficiary's legal representative, 
an adult member of the beneficiary's family, a person interested 
in the the custodial trust property, or a person interested in 
the welfare of the beneficiary may petition the court for an 
accounting by the custodial trustee or the custodial trustee's 
legal representative. 
     (c) A successor custodial trustee may petition the court 
for an accounting by a predecessor custodial trustee. 
     (d) In an action or proceeding under this act or in any 
other proceeding, the court may require or permit the custodial 
trustee or the custodial trustee's legal representative to 
account.  The custodial trustee or the custodial trustee's legal 
representative may petition the court for approval of final 
accounts. 
    (e) If a custodial trustee is removed, the court shall 
require an accounting and order delivery of the custodial trust 
property and records to the successor custodial trustee and the 
execution of all instruments required for transfer of the 
custodial trust property. 
    (f) On petition of the custodial trustee or any person who 
could petition for an accounting, the court, after notice to 
interested persons, may issue instructions to the custodial 
trustee or review the propriety of the acts of a custodial 
trustee or the reasonableness of compensation determined by the 
custodial trustee for the services of the custodial trustee or 
others. 
    (g) All proceedings described in this section shall be 
conducted in accordance with the procedures set forth in 
sections 501B.16 to 501B.25. 
    Sec. 15.  [529.15] [LIMITATIONS OF ACTION AGAINST CUSTODIAL 
TRUSTEE.] 
    (a) Except as provided in subsection (c), unless previously 
barred by adjudication, consent, or limitation, a claim for 
relief against a custodial trustee for accounting or breach of 
duty is barred as to a beneficiary, a person to whom custodial 
trust property is to be paid or delivered, or the legal 
representative of an incapacitated or deceased beneficiary or 
payee: 
    (1) who has received a final account or statement fully 
disclosing the matter unless an action or proceeding to assert 
the claim is commenced within two years after receipt of the 
final account or statement; or 
    (2) who has not received a final account or statement fully 
disclosing the matter unless an action or proceeding to assert 
the claim is commenced within three years after the termination 
of the custodial trust. 
    (b) Except as provided in subsection (c), a claim for 
relief to recover from a custodial trustee for fraud, 
misrepresentation, or concealment related to the final 
settlement of the custodial trust or concealment of the 
existence of the custodial trust, is barred unless an action or 
proceeding to assert the claim is commenced within five years 
after the termination of the custodial trust. 
    (c) A claim for relief is not barred by this section if the 
claimant: 
    (1) is a minor, until the earlier of two years after the 
claimant becomes an adult or dies; 
    (2) is an incapacitated adult, until the earliest of two 
years after (i) the appointment of a conservator, (ii) the 
removal of the incapacity, or (iii) the death of the claimant; 
or 
    (3) was an adult, now deceased, who was not incapacitated, 
until two years after the claimant's death. 
    Sec. 16.  [529.16] [DISTRIBUTION ON TERMINATION.] 
    (a) Upon termination of a custodial trust, the custodial 
trustee shall transfer the unexpended custodial trust property: 
    (1) to the beneficiary, if not incapacitated or deceased; 
    (2) to the holder of the beneficiary's power of attorney; 
    (3) to the conservator or other recipient designated by the 
court for an incapacitated beneficiary; or 
    (4) upon the beneficiary's death, in the following order: 
    (i) to the survivor of multiple beneficiaries if 
survivorship is provided for pursuant to section 6; 
    (ii) as designated in the instrument creating the custodial 
trust; or 
    (iii) to the estate of the deceased beneficiary. 
    (b) If, when the custodial trust would otherwise terminate, 
the distributee is incapacitated, the custodial trust continues 
for the use and benefit of the distributee as beneficiary until 
the incapacity is removed or the custodial trust is otherwise 
terminated. 
    (c) 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. 
    Sec. 17.  [529.17] [METHODS AND FORMS FOR CREATING 
CUSTODIAL TRUSTS.] 
    (a) If a transaction, including a declaration with respect 
to or a transfer of specific property, otherwise satisfies 
applicable law, the criteria of section 2 are satisfied by: 
    (1) the execution and either delivery to the custodial 
trustee or recording of an instrument in substantially the 
following form: 
 TRANSFER UNDER THE MINNESOTA UNIFORM CUSTODIAL TRUST ACT 
    I, ........... (name of transferor or name and 
representative 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 
absence of direction by the beneficiary under the Minnesota 
uniform custodial trust act, the following:  (insert a 
description of the custodial trust property legally sufficient 
to identify and transfer each item of property). 
Dated:  .................... 
........................ 
(Signature); or 
    (2) the execution and the recording or giving notice of its 
execution to the beneficiary of an instrument in substantially 
the following form: 
 DECLARATION OF TRUST UNDER THE MINNESOTA 
      UNIFORM CUSTODIAL TRUST ACT 
    I, ............. (name of owner of property), declare that 
henceforth I hold as custodial trustee for ............ (name of 
beneficiary other than transferor) as beneficiary and 
............ as distributee on termination of the trust in 
absence of direction by the beneficiary under the Minnesota 
uniform custodial trust act, the following:  (insert a 
description of the custodial trust property legally sufficient 
to identify and transfer each item of property). 
Dated:  .................. 
.................... 
(Signature) 
    (b) Customary methods of transferring or evidencing 
ownership of property may be used to create a custodial trust, 
including any of the following: 
    (1) registration of a security in the name of a trust 
company, an adult other than the transferor, or the transferor 
if the beneficiary is other than the transferor, designated in 
substance "as custodial trustee for ........... (name of 
beneficiary) under the Minnesota uniform custodial trust act"; 
    (2) delivery of a certificated security, or a document 
necessary for the transfer of an uncertificated security, 
together with any necessary endorsement, to an adult other than 
the transferor or to a trust company as custodial trustee, 
accompanied by an instrument in substantially the form 
prescribed in subsection (a)(1); 
    (3) payment of money or transfer of a security held in the 
name of a broker or a financial institution or its nominee to a 
broker or financial institution for credit to an account in the 
name of a trust company, an adult other than the transferor, or 
the transferor if the beneficiary is other than the transferor, 
designated in substance; "as custodial trustee for ............. 
(name of beneficiary) under the Minnesota uniform custodial 
trust act"; 
    (4) registration of ownership of a life or endowment 
insurance policy or annuity contract with the issuer in the name 
of a trust company, an adult other than the transferor, or the 
transferor if the beneficiary is other than the transferor, 
designated in substance:  "as custodial trustee for ............ 
(name of beneficiary) under the Minnesota uniform custodial 
trust act"; 
    (5) delivery of a written assignment to an adult other than 
the transferor or to a trust company whose name in the 
assignment is designated in substance by the words:  "as 
custodial trustee for ........... (name of beneficiary) under 
the Minnesota uniform custodial trust act"; 
    (6) irrevocable exercise of a power of appointment, 
pursuant to its terms, in favor of a trust company, an adult 
other than the donee of the power, or the donee who holds the 
power if the beneficiary is other than the donee, whose name in 
the appointment is designated in substance:  "as custodial 
trustee for ............. (name of beneficiary) under the 
Minnesota uniform custodial trust act"; 
    (7) delivery of a written notification or assignment of a 
right to future payment under a contract to an obligor which 
transfers the right under the contract to a trust company, an 
adult other than the transferor, or the transferor if the 
beneficiary is other than the transferor, whose name in the 
notification or assignment is designated in substance; "as 
custodial trustee for ........... (name of beneficiary) under 
the Minnesota custodial trust act"; 
    (8) execution, delivery, and recordation of a conveyance of 
an interest in real property in the name of a trust company, an 
adult other than the transferor, or the transferor if the 
beneficiary is other than the transferor, designated in 
substance:  "as custodial trustee for .............. (name of 
beneficiary) under the Minnesota uniform custodial trust act"; 
    (9) issuance of a certificate of title by an agency of a 
state or of the United States which evidences title to tangible 
personal property:  
    (i) issued in the name of a trust company, an adult other 
than the transferor, or the transferor if the beneficiary is 
other than the transferor, designated in substance:  "as 
custodial trustee for ............(name of beneficiary) under 
the Minnesota uniform custodial trust act"; or 
    (ii) delivered to a trust company or an adult other than 
the transferor or endorsed by the transferor to that person 
designated in substance:  "as custodial trustee for 
............. (name of beneficiary) under the Minnesota uniform 
custodial trust act"; or 
    (10) execution and delivery of an instrument of gift to a 
trust company or an adult other than the transferor, designated 
in substance:  "as custodial trustee for .......... (name of 
beneficiary) under the Minnesota uniform custodial trust act." 
    Sec. 18.  [529.18] [APPLICABLE LAW.] 
    (a) This act applies to a transfer or declaration creating 
a custodial trust that refers to this act if, at the time of the 
transfer or declaration, the transferor, beneficiary, or 
custodial trustee is a resident of or has its principal place of 
business in this state or custodial trust property is located in 
this state.  The custodial trust remains subject to this act 
despite a later change in residence or principal place of 
business of the transferor, beneficiary, or custodial trustee, 
or removal of the custodial trust property from this state. 
    (b) A transfer made pursuant to an act of another state 
substantially similar to this act is governed by the law of that 
state and may be enforced in this state. 
    Sec. 19.  [529.19] [SHORT TITLE.] 
    This act may be cited as the "Minnesota uniform custodial 
trust act." 
    Sec. 20.  [DEFINITION.] 
    Where the term "this act" appears in sections 1 to 19, it 
refers to sections 1 to 19. 
    Presented to the governor April 19, 1990 
    Signed by the governor April 20, 1990, 10:38 a.m.