Chapter 244 Oregon Laws 2001

AN ACT

SB 122

Relating to transfers to minors; creating new provisions; and amending ORS 126.822, 126.832, 126.839 and 126.869.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 2 of this 2001 Act is added to and made a part of ORS 126.805 to 126.886.

SECTION 2. (1) Except as provided in this section, a person making a transfer to a custodian under ORS 126.816 or 126.819 may provide for a delayed transfer of the custodial property to the minor at a specific time after the minor attains the age of 21 years and before the minor attains the age of 25 years. If the person making the transfer to the custodian under ORS 126.816 or 126.819 specifies no time for the transfer of the custodial property to the minor, the custodial property will be transferred to the minor when the minor attains the age of 21 years.

(2) A personal representative or trustee making a transfer to a custodian under ORS 126.819 may provide for a delayed transfer of the custodial property pursuant to this section only if the governing will or trust directs that the custodial property be transferred to the minor after the minor attains the age of 21 years and before the minor attains the age of 25 years. The transfer to the custodian must provide that the custodial property be transferred to the minor at the age specified in the governing will or trust.

(3) A transfer to a custodian under ORS 126.816 or 126.819 is not invalid if the transfer provides that the custodial property be transferred to the minor after the minor attains the age of 25 years. If an otherwise valid transfer provides that the custodial property be transferred to the minor after the minor attains the age of 25 years, the custodial property must be transferred to the minor when the minor attains the age of 25 years.

SECTION 3. ORS 126.822 is amended to read:

126.822. (1) Subject to subsection (3) of this section, a personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to ORS 126.832, in the absence of a will or under a will or trust that does not contain an authorization to do so.

(2) Subject to subsection (3) of this section, a conservator may make an irrevocable transfer to another adult or trust company as custodian for the benefit of the minor pursuant to ORS 126.832.

(3) A transfer under subsection (1) or (2) of this section may be made only if:

(a) The personal representative, trustee or conservator considers the transfer to be in the best interest of the minor;

(b) The transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement or other governing instrument; and

SECTION 4. ORS 126.832 is amended to read:

126.832. (1) Custodial property is created and a transfer is made whenever:

(a) An uncertificated security or a certificated security in registered form is either:

(A) 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 Oregon Uniform Transfers to Minors Act”] specified in subsection (3) of this section; or

(B) Delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary indorsement 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 (2) of this section;

(b) Money is paid or delivered 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 Oregon Uniform Transfers to Minors Act”] specified in subsection (3) of this section;

(A) 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 Oregon Uniform Transfers to Minors Act”] specified in subsection (3) of this section; or

(B) 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 Oregon Uniform Transfers to Minors Act”] specified in subsection (3) of this section;

(d) 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 payer, 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 Oregon Uniform Transfers to Minors Act”] specified in subsection (3) of this section;

(e) 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 Oregon Uniform Transfers to Minors Act”] specified in subsection (3) of this section;

(f) 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:

(A) 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 Oregon Uniform Transfers to Minors Act”] specified in subsection (3) of this section; or

(B) Delivered to an adult other than the transferor or to a trust company, indorsed to that person followed in substance by the words[: “As custodian for ___ (name of minor) under the Oregon Uniform Transfers to Minors Act”] specified in subsection (3) of this section; or

(g) An interest in any property not described in paragraphs (a) to (f) 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 (2) of this section.

(2) An instrument in the following form satisfies the requirements of paragraph (a)(B) of this subsection and paragraph (g) of this subsection:

______________________________________________________________________________

TRANSFER UNDER THE OREGON

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 Oregon Uniform Transfers to Minors Act, the following: (insert a description of the custodial property sufficient to identify it).

Delayed Transfer (may be made only if authorized by section 2 of this 2001 Act): The custodian shall deliver the property to the minor when the minor attains the age of __ years (not less than 21 nor more than 25).

Dated: _________________

____________________

(Signature)

_____ (name of custodian) acknowledges receipt of the property described above as custodian for the minor named above under the Oregon Uniform Transfers to Minors Act.

Dated: _________________

____________________

(Signature of Custodian)

______________________________________________________________________________

(3) For the purposes of subsection (1) of this section, the following words create custodial property:

(a) “As custodian for ___ (name of minor) under the Oregon Uniform Transfers to Minors Act”; or

(b) If the custodial property is subject to delayed transfer under section 2 of this 2001 Act, “As custodian for ___ (name of minor) under the Oregon Uniform Transfers to Minors Act until the minor attains the age of __ years.”

[(3)] (4) A transferor shall place the custodian in control of the custodial property as soon as practicable.

SECTION 5. ORS 126.839 is amended to read:

126.839. (1) The validity of a transfer made in a manner prescribed in ORS 126.805 to 126.886 is not affected by:

(a) Failure of the transferor to comply with ORS 126.832 [(3)] (4) concerning possession and control;

(b) 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 ORS 126.832 (1); or

(c) Death or incapacity of a person nominated under ORS 126.812 or designated under ORS 126.832 as custodian or the disclaimer of the office by that person.

(2) A transfer made pursuant to ORS 126.832 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 ORS 126.805 to 126.886 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 ORS 126.805 to 126.886.

(3) By making a transfer, the transferor incorporates in the disposition all the provisions of ORS 126.805 to 126.886 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 ORS 126.805 to 126.886.

SECTION 6. ORS 126.869 is amended to read:

126.869. Except as provided in section 2 of this 2001 Act, the custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor’s estate upon the earlier of:

(1) The minor’s attainment of 21 years of age with respect to custodial property transferred under ORS 126.816 or 126.819;

(2) The minor’s attainment of 18 years of age with respect to custodial property transferred under ORS 126.822 or 126.826; or

(3) The minor’s death.

Approved by the Governor May 30, 2001

Filed in the office of Secretary of State May 30, 2001

Effective date January 1, 2002

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