§ 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) of this section;
(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 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”; 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 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 that 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 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) of this subsection 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) of this section.
(b) An instrument in the following form satisfies the requirements of subdivisions (a)(1)(ii) and (a)(7) of this section:
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.
History of Section.
P.L. 1985, ch. 389, § 2; P.L. 1998, ch. 474, § 1.