71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 582
Senate Bill 122
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Joint Interim Judiciary
Committee for Estate Planning section of Oregon State Bar)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Increases from $10,000 to $30,000 amount that certain personal
representatives, trustees and conservators may transfer to
custodian for minor without approval of court.
Allows certain persons to create custodianship for property of
minor that lasts until minor attains age of 25 years.
A BILL FOR AN ACT
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
(c) The transfer is authorized by the court if it exceeds
{ - $10,000 - } { + $30,000 + } in value.
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 + };
(c) The ownership of a life or endowment insurance policy or
annuity contract is either:
(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.
----------