2006 Louisiana Laws - RS 9:2260.17 — Distribution on termination

§2260.17.  Distribution on termination

A.  Upon termination of a custodial trust, the custodial trustee shall transfer the unexpended custodial trust property to one of the following:

(1)  To the beneficiary, if not incapacitated or deceased.

(2)  To the curator or other recipient designated by the court for an incapacitated beneficiary.

(3)  Upon the beneficiary's death, in the following order:

(a)  As last directed in a writing signed by the deceased beneficiary while not incapacitated and received by the custodial trustee during the life of the deceased beneficiary.

(b)  To the survivor of multiple beneficiaries if survivorship, or right of accretion, is provided for pursuant to R.S. 9:2260.6.

(c)  As designated in the instrument creating the custodial trust.

(d)  To the estate of the deceased beneficiary.

B.  If, when the custodial trust would otherwise terminate, the distributee is incapacitated, the custodial trust continues for the use and benefit of the distributee as beneficiary until the incapacity is removed or the custodial trust is otherwise terminated.

C.  Death of a beneficiary does not terminate the power of the custodial trustee to discharge obligations of the custodial trustee or beneficiary incurred before the termination of the custodial trust.

Acts 1995, No. 655, §1, eff. Jan. 1, 1998.