NY EPTL, Article 7
Section 7-6.1 Definitions. 7-6.2 Scope and jurisdiction. 7-6.3 Nomination of custodian. 7-6.4 Transfer by gift or exercise of power of appointment. 7-6.5 Transfer authorized by will or trust. 7-6.6 Other transfer by fiduciary. 7-6.7 Transfer by obligor. 7-6.8 Receipt for custodial property. 7-6.9 Manner of creating custodial property and effecting transfer; designation of initial custodian; control. 7-6.10 Single custodianship. 7-6.11 Validity and effect of transfer. 7-6.12 Care of custodial property. 7-6.13 Powers of custodian. 7-6.14 Use of custodial property. 7-6.15 Custodian`s expenses, compensation and bond. 7-6.16 Exemption of third person from liability. 7-6.17 Liability to third persons. 7-6.18 Renunciation, resignation, death or removal of custodian; designation of successor custodian. 7-6.19 Accounting by and determination of liability of custodian. 7-6.20 Termination of custodianship. 7-6.21 Age eighteen election. 7-6.22 Effect on existing custodianships. 7-6.23 Applicability. 7-6.24 Uniformity of application and construction. 7-6.25 Short title. 7-6.26 Severability. S 7-6.7 Transfer by obligor (a) Subject to paragraphs (b) and (c), a person not subject to 7-6.5 or 7-6.6 who holds property of or owes a liquidated debt to a minor not having a guardian may make an irrevocable transfer to a custodian for the benefit of the minor pursuant to 7-6.9. (b) If a person having the right to do so under 7-6.3 has nominated a custodian under that section to receive the custodial property, the transfer must be made to that person. (c) If no custodian has been nominated under 7-6.3, or all persons so nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, a transfer under this section may be made to an adult member of the minor`s family, unless the property exceeds fifty thousand dollars in value, or to a trust company. S 7-6.8 Receipt for custodial property A written acknowledgement of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to a custodian pursuant to this part. S 7-6.9 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 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 New York Uniform Transfers to Minors Act"; 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 paragraph (b); (2) money is paid or delivered, or a security held in the name of a broker, financial institution, or its nominee is transferred, 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 New York Uniform Transfers to Minors Act"; (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 New York Uniform Transfers to Minors Act"; or (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 New York Uniform Transfers to Minors Act"; (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 New York Uniform Transfers to Minors Act"; (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 New York Uniform Transfers to Minors Act"; (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 the words: "as custodian for __________________ (name of minor) under the New York Uniform Transfers to Minors Act"; 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 New York Uniform Transfers to Minors Act"; or (7) an interest in any property not described in subparagraphs (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 paragraph (b). (b) An instrument in the following form satisfies the requirements of clause (ii) of subparagraph (1) and subparagraph (7) of paragraph (a):
"TRANSFER UNDER THE NEW YORK UNIFORM TRANSFERS TO MINORS ACT I, __________________ (name of transferor or name and representative capacity if a fiduciary) hereby transfer to _____________ (name of custodian), as custodian for ________________ (name of minor) under the New York Uniform Transfers to Minors Act, 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 New York 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. S 7-6.10 Single custodianship A transfer may be made only for one minor, and only one person may be the custodian. All custodial property held under this part by the same custodian for the benefit of the same minor constitutes a single custodianship. S 7-6.11 Validity and effect of transfer (a) The validity of a transfer made in a manner prescribed in this part is not affected by: (1) The failure of the transferor to comply with paragraph (c) of 7-6.9 concerning possession and control; (2) designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under paragraph (a) of 7-6.9; or (3) death or incapacity of a person nominated under 7-6.3 or designated under 7-6.9 as custodian or the disclaimer of the office by that person. (b) A transfer made pursuant to 7-6.9 is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights, powers, duties, and authority provided in this part, and neither the minor nor the minor`s legal representative has any right, power, duty, or authority with respect to the custodial property except as provided in this part. (c) By making a transfer, the transferor incorporates in the disposition all the provisions of this part and grants to the custodian, and to any third person dealing with a person designated as custodian, the respective powers, rights, and immunities provided in this part. S 7-6.12 Care of custodial property (a) A custodian shall: (1) take control of custodial property; (2) register or record title to custodial property if appropriate; and (3) collect, hold, manage, invest, and reinvest custodial property. (b) In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries and is specifically authorized to delegate investment and management functions in the manner of a trustee as provided in section 11-2.3. If a custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, the custodian shall use that skill or expertise. However, a custodian, in the custodian`s discretion and without liability to the minor or the minor`s estate, may retain any custodial property received from a transferor. (c) A custodian may invest in or pay premiums on life insurance or endowment policies on (1) the life of the minor only if the minor or the minor`s estate is the sole beneficiary, or (2) the life of another person in whom the minor has an insurable interest only to the extent that the minor, the minor`s estate, or the custodian in the capacity of custodian, is the irrevocable beneficiary. (d) A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor. Custodial property consisting of certificated securities may be held on deposit at a stock brokerage firm or a financial institution registered in a street name or nominee name. Custodial property consisting of an undivided interest is so identified if the minor`s interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered, or held in an account designated, in the name of the custodian, followed in substance by the words: "as a custodian for____________(name of minor) under the New York Uniform Transfers to Minors Act." (e) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor`s tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor has attained the age of fourteen years. S 7-6.13 Powers of custodian (a) A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capacity only. (b) This section does not relieve a custodian from liability for breach of 7-6.12. S 7-6.14 Use of custodial property (a) A custodian may deliver or pay to the minor or expend for the minor`s benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to (1) the duty or ability of the custodian personally or of any other person to support the minor, or (2) any other income or property of the minor which may be applicable or available for the support of the minor. (b) On petition of an interested person or the minor if the minor has attained the age of fourteen years, the court may order the custodian to deliver or pay to the minor or expend for the minor`s benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor. (c) A delivery, payment, or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor.
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S 7-6.15 Custodian`s expenses, compensation, and bond (a) A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian`s duties. (b) Except for one who is a transferor under 7-6.4, a custodian has an election during each calendar year to charge reasonable compensation for services performed during that year. A custodian`s election to charge reasonable compensation for a calendar year must be exercised during the calendar year. (c) Except as provided in paragraph (f) of 7-6.18, a custodian shall not be required to give a bond. S 7-6.16 Exemption of third person from liability A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining: (a) the validity of the purported custodian`s designation; (b) the propriety of, or the authority under this part for, any act of the purported custodian; (c) the validity or propriety under this part of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian; or (d) the propriety of the application of any property of the minor delivered to the purported custodian. S 7-6.17 Liability to third persons (a) A claim based on (1) a contract entered into by a custodian acting in a custodial capacity, (2) an obligation arising from the ownership or control of custodial property, or (3) a tort committed during the custodianship, may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor. (b) A custodian is not personally liable: (1) on a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or (2) for an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault. (c) A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault. S 7-6.18 Renunciation, resignation, death, or removal of custodian; designation of successor custodian (a) A person nominated under 7-6.3 or designated under 7-6.9 as custodian may decline to serve by delivering a valid disclaimer to the person who made the nomination or to the transferor or the transferor`s legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian able, willing, and eligible to serve was nominated under 7-6.3, the person who made the nomination may nominate a substitute custodian under 7-6.3; otherwise the transferor or the transferor`s legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property under paragraph (a) of 7-6.9. The custodian so designated has the rights of a successor custodian. (b) A custodian at any time may designate a trust company or an adult other than a transferor under 7-6.4 as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor. If the instrument of designation does not contain or is not accompanied by the resignation of the custodian, the designation of the successor does not take effect until the custodian resigns, dies, become incapacitated, or is removed. The transferor may designate one or more persons as successor custodian to serve in the designated order of priority, in case the custodian originally designated or a prior successor custodian is unable, declines, or is ineligible to serve or resigns, dies, becomes incapacitated, or is removed. The designation either (1) shall be made in the same transaction and by the same document by which the transfer is made, or (2) shall be made by executing and dating a separate instrument of designation before a subscribing witness other than a successor as a part of the same transaction and contemporaneously with the execution of the document by which the transfer is made. The designation is made by setting forth the successor custodian`s name, followed in substance by the words: "is designated successor custodian." A successor custodian designated by the transferor may be a trust company or an adult other than the transferor. A successor custodian effectively designated by the transferor has priority over a successor custodian designated by a custodian. (c) A custodian may resign at any time by delivering written notice to the minor if the minor has attained the age of fourteen years and to the successor custodian and by delivering the custodial property to the successor custodian. (d) If the transferor has not effectively designated one or more successor custodians and a custodian is ineligible, dies, or becomes incapacitated without having effectively designated a successor and the minor has attained the age of fourteen years, the minor may designate as successor custodian, in the manner prescribed in paragraph (b), an adult member of the minor`s family, a guardian of the minor, or a trust company. If the minor has not attained the age of fourteen years or fails to act within sixty days after the ineligibility, death, or incapacity, the guardian of the minor becomes successor custodian. If the minor has no guardian or the guardian declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor`s family, or any other interested person may petition the court to designate a successor custodian. (e) A custodian who declines to serve under paragraph (a) or resigns under paragraph (c), or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall put the custodial property and records in the possession and control of the successor custodian. The successor custodian by action may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received. (f) A transferor, the legal representative of a transferor, an adult member of the minor`s family, a guardian of the minor, or the minor if the minor has attained the age of fourteen years may petition the court to remove the custodian for cause and to designate a successor custodian other than a transferor under 7-6.4 or to require the custodian to give appropriate bond. S 7-6.19 Accounting by and determination of liability of custodian (a) A minor who has attained the age of fourteen years, the minor`s guardian or legal representative, an adult member of the minor`s family, a transferor, or a transferor`s legal representative may petition the court (1) for an accounting by the custodian or the custodian`s legal representative; or (2) for a determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property unless the responsibility has been adjudicated in an action under 7-6.17 to which the minor or the minor`s legal representative was a party. (b) A successor custodian may petition the court for an accounting by the predecessor custodian. (c) The court, in a proceeding under this part or in any other proceeding, may require or permit the custodian or the custodian`s legal representative to account. (d) If a custodian is removed under paragraph (f) of 7-6.18, the court shall require an accounting and order delivery of the custodial property and records to the successor custodian and the execution of all instruments required for transfer of the custodial property. S 7-6.20 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: (a) the minor`s attainment of twenty-one years of age with respect to custodial property transferred under 7-6.4 or 7-6.5; (b) the minor`s attainment of age eighteen or other statutory age of majority of New York with respect to custodial property transferred under 7-6.6 or 7-6.7; or (c) the minor`s death. S 7-6.21 Age eighteen election Notwithstanding the foregoing sections of this part, if with respect to any gift made pursuant to 7-6.9, the designations of the custodian contains, in substance, the phrase, "until age eighteen", then all records of the custodian with respect to such gift shall contain such phrase, and the gift shall be administered under this part as if the word "eighteen" were substituted for the word "twenty-one" wherever such word appears in paragraphs (a) and (k) of section 7-6.1 and in section 7-6.20. S 7-6.22 Effect on existing custodianships (a) Any transfer of custodial property made before January first, nineteen hundred ninety-seven is validated notwithstanding that there was no specific authority in part 4 of this article for the coverage of custodial property of that kind or for a transfer from that source at the time the transfer was made. (b) All accounts established under part 4 of this article and in existence on January first, nineteen hundred ninety-seven shall be governed by the provisions of this part except insofar as such application impairs constitutionally vested rights. Notwithstanding the provisions of this paragraph, the age of termination in effect prior to January first, nineteen hundred ninety-seven shall remain in effect with respect to such accounts, including any additions made after December thirty-first, nineteen hundred ninety-six. (c) To the extent that this part, by virtue of paragraph (b) of this section, does not apply to transfers made in a manner prescribed in part 4 of this article or to the powers, duties, and immunities conferred by transfers in that manner upon custodians and persons dealing with custodians, the repeal of part 4 of this article shall not affect those transfers or those powers, duties, and immunities. S 7-6.23 Applicability This part applies to a transfer within the scope of 7-6.2 made on or after January first, nineteen hundred ninety-seven if: (a) the transfer purports to have been made under the New York Uniform Gifts to Minor Act; or (b) the instrument by which the transfer purports to have been made uses in substance the designation "as custodian under the Uniform Gifts to Minors Act" or "as custodian under the Uniform Transfers to Minors Act" of any other state, and the application of this part is necessary to validate the transfer. S 7-6.24 Uniformity of application and construction This part shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this part among states enacting it. S 7-6.25 Short title This part may be cited as "The New York Uniform Transfers to Minors Act." S 7-6.26 Severability If any provisions of this part or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this part which can be given effect without the invalid provision or application, and to this end provisions of this part are severable.