Note: see session law sections for effective dates.
(a) A person required to transfer money or personal property to a minor may do so, as to an amount or value not exceeding $5,000 per year or a different amount that is approved by the court, by transferring it to:
(1) a person who has the care and custody of the minor and with whom the minor resides;
(2) a guardian of the minor;
(3) a custodian under the Uniform Transfers To Minors Act or custodial trustee under the Uniform Custodial Trust Act; or
(4) a financial institution as a deposit in an interest-bearing account or certificate in the sole name of the minor and giving notice of the deposit to the minor.
(b) This section does not apply if the person making payment or delivery knows that a conservator has been appointed or that a proceeding for appointment of a conservator of the minor is pending.
(c) A person who transfers money or property in compliance with this section is not responsible for its proper application.
(d) A guardian or other person who receives money or property for a minor under paragraph (a), clause (1) or (2), may only apply it to the support, care, education, health, and welfare of the minor, and may not derive a personal financial benefit except for reimbursement for necessary expenses. Any excess must be preserved for the future support, care, education, health, and welfare of the minor and any balance must be transferred to the minor upon emancipation or attaining majority.