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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 sections 529.01 to 529.19 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.
History: 1990 c 476 s 9