2005 Nevada Revised Statutes - Chapter 167 — Transfers to Minors (Uniform Act)

CHAPTER 167 - TRANSFERS TO MINORS (UNIFORMACT)

NRS 167.010 Shorttitle.

NRS 167.020 Definitions.

NRS 167.021 Applicability;custodian subject to personal jurisdiction.

NRS 167.023 Transferby gift or exercise of power of appointment.

NRS 167.025 Transferauthorized in will or trust.

NRS 167.027 Transfernot authorized in will or trust; transfer by conservator.

NRS 167.029 Transferby debtor or person holding property of minor.

NRS 167.030 Creationof custodial property; manner of making transfer.

NRS 167.033 Nominationof custodian to serve upon future event.

NRS 167.034 Delayof time for certain transfers; requirements.

NRS 167.035 Validityof transfer.

NRS 167.040 Effectof transfer.

NRS 167.043 Acknowledgmentof delivery of custodial property.

NRS 167.045 Rightsof custodian.

NRS 167.050 Dutiesand powers of custodian.

NRS 167.055 Delivery,payment or expenditure of custodial property for benefit of minor.

NRS 167.060 Expenses,compensation and bond of custodian.

NRS 167.070 Exemptionof third persons from liability.

NRS 167.080 Disclaimer,resignation, death or removal of custodian; designation of successor custodian;petition to remove or require bond of custodian.

NRS 167.085 Claimsagainst custodial property; liability of custodian and minor.

NRS 167.090 Petitionfor accounting by custodian or determination of responsibility by court;delivery of custodial property and records to successor custodian.

NRS 167.095 Transferby custodian to minor.

NRS 167.100 Construction.

_________

NRS 167.010 Shorttitle. This chapter may be cited as NevadasUniform Act on Transfers to Minors.

(Added to NRS by 1957, 21; A 1967, 370; 1985, 69)

NRS 167.020 Definitions. In this chapter, unless the context otherwise requires:

1. Adult means a person who has attained the age of18 years.

2. Benefit plan means an employers plan for thebenefit of an employee or partner.

3. Broker means a person lawfully engaged in thebusiness of effecting transactions in securities or commodities for his ownaccount or for the account of others.

4. Conservator means a person appointed or qualifiedby a court to act as general, limited or temporary guardian of a minorsproperty or any other person legally authorized to perform substantially thesame functions.

5. Court means the district court.

6. Custodial property means:

(a) Any interest in property transferred to a custodianin a manner prescribed in this chapter; and

(b) The income from and the proceeds of that interestin property.

7. Custodian means a person so designated in amanner prescribed in this chapter. The term includes a successor or substitutecustodian.

8. Financial institution means a bank, trustcompany, savings institution or credit union chartered and supervised underfederal law or the laws of a state.

9. Legal representative means a personalrepresentative or conservator.

10. Member of a minors family means a minorsparent, stepparent, spouse, grandparent, brother, sister, uncle or aunt,whether of the whole blood or the half blood, or by or through legal adoption.

11. Minor means a person who has not attained theage of 18 years.

12. Person means any natural person, corporation,organization or other legal entity.

13. Personal representative means an executor,administrator, successor personal representative or special administrator of adecedents estate or any other person legally authorized to performsubstantially the same functions.

14. State means any state of the United States, the Districtof Columbia, the Commonwealth of Puerto Rico or any territory or possessionsubject to the legislative authority of the United States.

15. Transfer means a transaction which createscustodial property in a manner prescribed in this chapter.

16. Transferor means a person who makes a transferin a manner prescribed in this chapter.

17. Trust company means a financial institution,corporation or other legal entity authorized to exercise general trust powers.

(Added to NRS by 1957, 21; A 1965, 1013; 1967, 371;1977, 1024; 1983, 9; 1985, 69)

NRS 167.021 Applicability;custodian subject to personal jurisdiction.

1. This chapter applies to a transfer that refers toNevadas Uniform Act on Transfers to Minors in the designation under subsection1 of NRS 167.030 by which the transferis made if at the time of the transfer, the transferor, the minor or the custodianis a resident of this state or the custodial property is located in this state.The custodianship so created remains subject to the provisions of this chapterdespite a subsequent change in the residence of the transferor, the minor orthe custodian, or the removal of the custodial property from this state.

2. A person designated as a custodian under thischapter is subject to personal jurisdiction in this state with respect to anymatter relating to the custodianship.

3. A transfer that purports to be made and which isvalid under the Uniform Transfers to Minors Act, the Uniform Gifts to MinorsAct or a substantially similar act, of another state is governed by the law ofthe designated state and may be executed and is enforceable in this state if atthe time of the transfer, the transferor, the minor or the custodian is aresident of the designated state or the custodial property is located in thedesignated state.

(Added to NRS by 1985, 66)

NRS 167.023 Transferby gift or exercise of power of appointment. Aperson may make a transfer by irrevocable gift to, or the irrevocable exerciseof a power of appointment in favor of, a custodian for the benefit of a minorpursuant to the provisions of this chapter.

(Added to NRS by 1985, 67)

NRS 167.025 Transferauthorized in will or trust.

1. A personal representative or trustee may make anirrevocable transfer pursuant to the provisions of this chapter to a custodianfor the benefit of a minor as authorized in the governing will or trust.

2. If the testator or settlor has nominated acustodian to receive the custodial property, the transfer must be made to thatperson.

3. If the testator or settlor has not nominated acustodian, or all persons so nominated as custodian die before the transfer orare unable, decline or are ineligible to serve, the personal representative orthe trustee shall designate the custodian from among those eligible to serve ascustodian for property of that kind.

(Added to NRS by 1985, 67)

NRS 167.027 Transfernot authorized in will or trust; transfer by conservator.

1. A personal representative or trustee may make anirrevocable transfer to another adult or trust company as custodian for thebenefit of a minor pursuant to the provisions of this chapter, in the absenceof a will or under a will or trust that does not contain an authorization to doso.

2. A conservator may make an irrevocable transfer toanother adult or trust company as custodian for the benefit of the minorpursuant to the provisions of this chapter.

3. A transfer made pursuant to this section may bemade only if:

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

(b) The transfer is not prohibited by or inconsistentwith the provisions of the applicable will, trust agreement or other governinginstrument; and

(c) The transfer is authorized by the court if itexceeds $10,000 in value.

(Added to NRS by 1985, 67)

NRS 167.029 Transferby debtor or person holding property of minor.

1. A person not subject to NRS 167.025 or 167.027 who holds property of or owes aliquidated debt to a minor not having a conservator may make an irrevocabletransfer to a custodian for the benefit of the minor pursuant to the provisionsof this chapter.

2. If a person has nominated a custodian under NRS 167.033 to receive the custodialproperty, the transfer must be made to that person.

3. If no custodian has been nominated, or if allpersons so nominated die before the transfer or are unable, decline or areineligible to serve, a transfer under this section may be made to an adultmember of the minors family or to a trust company, unless the property exceeds$10,000 in value.

(Added to NRS by 1985, 67)

NRS 167.030 Creationof custodial property; manner of making transfer.

1. Custodial property is created and a transfer ismade when:

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

(1) Registered in the name of the transferor, anadult other than the transferor or a trust company, followed in substance bythe words: as custodian for................(name of minor) under NevadasUniform Act on Transfers to Minors; or

(2) Delivered if in certificated form, or anydocument necessary for the transfer or an uncertificated security is delivered,with any necessary endorsement to an adult other than the transferor or to atrust company as custodian, accompanied by an instrument in substantially theform set forth in subsection 2;

(b) Money is paid or delivered to a broker or financialinstitution for credit to an account in the name of the transferor, an adultother than the transferor or a trust company, followed in substance by thewords: as custodian for................ (name of minor) under Nevadas UniformAct on Transfers to Minors;

(c) The ownership of a life or endowment insurancepolicy or annuity contract is:

(1) Registered with the issuer in the name ofthe transferor, an adult other than the transferor or a trust company, followedin substance by the words: as custodian for................(name of minor)under Nevadas Uniform Act on Transfers to Minors; or

(2) Assigned in a writing delivered to an adultother than the transferor or to a trust company whose name in the assignment isfollowed in substance by the words: as custodian for ................ (name ofminor) under Nevadas Uniform Act on Transfers to Minors;

(d) An irrevocable exercise of a power of appointmentor an irrevocable present right to future payment under a contract is thesubject of a written notification delivered to the payor, issuer or otherobligor that the right is transferred to the transferor, an adult other thanthe transferor or a trust company, whose name in the notification is followedin substance by the words: as custodian for................(name of minor)under Nevadas Uniform Act on Transfers to Minors;

(e) An interest in real property is recorded in thename of the transferor, an adult other than the transferor or a trust company,followed in substance by the words: as custodian for................ (name ofminor) under Nevadas Uniform Act on Transfers to Minors;

(f) A certificate of title issued by a department oragency of a state or of the United States which evidences title to tangiblepersonal property is:

(1) Issued in the name of the transferor, anadult other than the transferor or a trust company, followed in substance bythe words: as custodian for................(name of minor) under NevadasUniform Act on Transfers to Minors; or

(2) Delivered to an adult other than thetransferor or to a trust company, endorsed to that person followed in substanceby the words: as custodian for................(name of minor) under NevadasUniform Act on Transfers to Minors; or

(g) An interest in any property not described inparagraphs (a) to (f), inclusive, is transferred to an adult other than the transferoror to a trust company by a written instrument in substantially the form setforth in subsection 2.

2. An instrument in the following form satisfies therequirements of subparagraph (2) of paragraph (a) of subsection 1 and paragraph(g) of subsection 1:

 

Transfer Under Nevadas Uniform Act onTransfers to Minors

 

I, ................(name of transferor or name andrepresentative capacity if a fiduciary) hereby transfer to................(name of custodian), as custodian for................(name ofminor) under Nevadas Uniform Act on Transfers to Minors, the following:(Insert a description of the custodial property sufficient to identify it).

Dated:

 

...............................................................

(Signature)

................(name of custodian) acknowledges receipt ofthe property described above as custodian for the minor named above underNevadas Uniform Act on Transfers to Minors.

Dated:

 

...............................................................

(Signature of Custodian)

 

3. Any transfer made in a manner prescribed insubsection 1 may be made to only one minor and only one person may be thecustodian. Any custodial property held by the same custodian for the benefit ofthe same minor constitutes a single custodianship.

4. A transferor shall promptly do all things withinhis power to put the subject of the transfer in the possession and control ofthe custodian.

(Added to NRS by 1957, 22; A 1965, 1014; 1967, 372;1983, 11; 1985, 71)

NRS 167.033 Nominationof custodian to serve upon future event.

1. A person having the right to designate therecipient of property transferable upon the occurrence of a future event mayrevocably nominate a custodian to receive the property for a minor beneficiaryupon the occurrence of the event by naming the custodian followed in substanceby the words: as custodian for ................ (name of minor) under NevadasUniform Act on Transfers to Minors. The nomination may name one or morepersons as substitute custodians to whom the property must be transferred, inthe order named, if the first nominated custodian dies before the transfer oris unable, declines or is ineligible to serve. The nomination may be made in awill, a trust, a deed, an instrument exercising a power of appointment, or in awriting designating a beneficiary of contractual rights which is registeredwith or delivered to the payor, issuer or other obligor of the contractualrights.

2. A custodian nominated under this section must be aperson to whom a transfer of property of that kind may be made under subsection1 of NRS 167.030.

3. The nomination of a custodian under this sectiondoes not create custodial property until the nominating instrument becomesirrevocable or a transfer to the nominated custodian is completed under theprovisions of this chapter. Unless the nomination of a custodian has beenrevoked, upon the occurrence of the future event, the custodianship becomeseffective and the custodian shall enforce a transfer of the custodial propertypursuant to the provisions of this chapter.

(Added to NRS by 1985, 66)

NRS 167.034 Delayof time for certain transfers; requirements.

1. Subject to the limitations of this section, thetime for transfer to the minor of custodial property transferred under NRS 167.023, 167.025 or 167.033 may be delayed until a specifiedtime after the time the minor attains 18 years of age. The time must bespecified in the transfer made under NRS167.030.

2. To specify a delayed time for transfer, the words:as custodian for ......................... (name of minor) until he attainsthe age of ........ (age at which transfer is to occur) years under NevadasUniform Act on Transfers to Minors must be substituted in substance for thewords: as custodian for ......................... (name of minor) underNevadas Uniform Act on Transfers to Minors in making the transfer under NRS 167.030.

3. The time for transfer to the minor of custodialproperty transferred under NRS 167.025or 167.033 may be delayed under thissection only if the governing will, trust or nomination provides in substancethat the custodianship is to continue until the time the minor attains aspecified age, which time may not be later than the time the minor attains 25years of age, and in such a case the will, trust or nomination determines thetime to be specified in making the transfer under NRS 167.030.

4. The time for transfer to the minor of custodialproperty transferred under NRS 167.023may be delayed only if the transfer under NRS167.030 provides in substance that the custodianship is to continue untilthe time the minor attains a specified age, which time may not be later thanthe time the minor:

(a) Attains 21 years of age, in the case of a transferby irrevocable gift under NRS 167.023;or

(b) Attains 25 years of age, in the case of a transferby irrevocable exercise of a power of appointment under NRS 167.023.

5. If a transfer under NRS 167.030 provides in substance that theduration of the custodianship is for a time longer than the maximum timepermitted by this section, the custodianship shall be deemed to continue onlyuntil the time the minor attains the maximum age permitted by this section forthe duration of a custodianship created by that type of transfer.

6. The provisions of this section do not apply to anytransfer made under NRS 167.027 or 167.029.

(Added to NRS by 1991, 1705)

NRS 167.035 Validityof transfer. The validity of a transfer madein a manner prescribed in this chapter is not affected by:

1. The failure of the transferor to comply with theprovisions of NRS 167.030 concerningpossession and control;

2. The designation of an ineligible custodian, exceptthe designation of the transferor in the case of property for which thetransferor is ineligible to serve as custodian under subsection 1 of NRS 167.030; or

3. The death or incapacity of a person nominated ordesignated as custodian or the disclaimer of the office by that person.

(Added to NRS by 1985, 68)

NRS 167.040 Effectof transfer.

1. A transfer made in a manner prescribed in thischapter is irrevocable and conveys to the minor indefeasibly vested legal titleto the custodial property, but the custodian has any right, power, duty orauthority provided in this chapter and neither the minor nor the minors legalrepresentative has any right, power, duty or authority with respect to thecustodial property except as provided in this chapter.

2. By making a transfer in a manner prescribed in thischapter, the transferor incorporates in his disposition all the provisions ofthis chapter and grants to the custodian, and to any third person dealing witha person designated as custodian, the respective powers, rights and immunitiesprovided in this chapter.

(Added to NRS by 1957, 23; A 1965, 1015; 1967, 373;1983, 12; 1985, 74)

NRS 167.043 Acknowledgmentof delivery of custodial property. A writtenacknowledgment of delivery by a custodian constitutes a sufficient receipt anddischarge for custodial property transferred to the custodian pursuant to theprovisions of this chapter.

(Added to NRS by 1985, 68)

NRS 167.045 Rightsof custodian.

1. A custodian, acting in a custodial capacity, hasall the rights, powers and authority over custodial property that an unmarriedadult has over his own property, but a custodian may exercise those rights,powers and authority in that capacity only.

2. This section does not relieve a custodian fromliability for breach of any of the provisions of NRS 167.050.

(Added to NRS by 1985, 68)

NRS 167.050 Dutiesand powers of custodian.

1. The custodian shall:

(a) Take control of the custodial property;

(b) Register or record title to the custodial property,if appropriate; and

(c) Collect, hold, manage, invest and reinvest thecustodial property.

2. In dealing with custodial property, the custodianshall observe the standard of care that would be observed by a prudent persondealing with property of another, and is not limited by any other statuterestricting investments by fiduciaries. If the custodian has a special skill orexpertise or is named custodian on the basis of representations of a specialskill or expertise, he shall use that skill or expertise. However, thecustodian, without liability to the minor or the minors estate, may retain anycustodial property received from a transferor.

3. The custodian may invest in or pay premiums on lifeinsurance or endowment policies on the life of:

(a) The minor only if the minor or the minors estateis the sole beneficiary; or

(b) Another person in whom the minor has an insurableinterest only to the extent that the minor, the minors estate or thecustodian, in the capacity of custodian, is the irrevocable beneficiary.

4. The custodian at all times shall keep custodial propertyseparate and distinct from all other property in a manner sufficient toidentify it clearly as custodial property of the minor. Custodial propertyconsisting of an undivided interest is so identified if the minors interest isheld as a tenant in common and is fixed. Custodial property subject torecordation is so identified if it is recorded, and custodial property subjectto registration is so identified if it is either registered, or held in an accountdesignated, in the name of the custodian, followed in substance by the words:as a custodian for................ (name of minor) under Nevadas Uniform Acton Transfers to Minors.

5. The custodian shall keep records of alltransactions with respect to custodial property, including information necessaryfor the preparation of the minors tax returns, and shall make them availablefor inspection at reasonable intervals by a parent or legal representative ofthe minor or by the minor, if the minor has attained the age of 14 years.

(Added to NRS by 1957, 23; A 1965, 1015; 1967, 373;1977, 1025; 1983, 12; 1985, 75)

NRS 167.055 Delivery,payment or expenditure of custodial property for benefit of minor.

1. A custodian may deliver or pay to the minor orexpend for the minors benefit so much of the custodial property as thecustodian considers advisable for the use and benefit of the minor, withoutcourt order and without regard to:

(a) The duty or ability of the custodian personally orof any other person to support the minor; or

(b) Any other income or property of the minor which maybe applicable or available for that purpose.

2. On petition of an interested person, or the minorif the minor has attained the age of 14 years, the court may order thecustodian to deliver or pay to the minor or expend for his benefit so much ofthe custodial property as the court considers advisable for his use andbenefit.

3. A delivery, payment or expenditure under thissection is in addition to, not in substitution for, and does not affect anyobligation of a person to support the minor.

(Added to NRS by 1985, 69)

NRS 167.060 Expenses,compensation and bond of custodian.

1. A custodian is entitled to reimbursement from thecustodial property for his reasonable expenses incurred in the performance ofhis duties.

2. Unless he is a transferor under NRS 167.023, a custodian may elect to receivefrom the custodial property during each calendar year reasonable compensationfor his services performed during that year.

3. Except as otherwise provided in this chapter, acustodian need not give a bond for the performance of his duties.

(Added to NRS by 1957, 24; A 1985, 77)

NRS 167.070 Exemptionof third persons from liability. A thirdperson acting in good faith and without court order may act on the instructionsof or otherwise deal with any person purporting to make a transfer orpurporting to act in the capacity of a custodian and, without knowledge, is notresponsible for determining:

1. Whether the person designated as custodian orpurporting to act as a custodian has been duly designated;

2. The propriety of, or the authority under thischapter for, any act of the purported custodian;

3. The validity or propriety under this chapter of anyinstrument or instructions executed or given by a person purporting to make atransfer or by the purported custodian; or

4. The propriety of the application of any property ofthe minor delivered to the purported custodian.

(Added to NRS by 1957, 24; A 1965, 1017; 1967, 375;1985, 77)

NRS 167.080 Disclaimer,resignation, death or removal of custodian; designation of successor custodian;petition to remove or require bond of custodian.

1. A person nominated or designated as a custodian maydecline to serve by delivering a valid disclaimer to the person who made thenomination or to the transferor or the transferors legal representative. Ifthe event giving rise to a transfer has not occurred and no substitutecustodian able, willing and eligible to serve was nominated, the person whomade the nomination may nominate a substitute custodian; otherwise thetransferor or the transferors legal representative shall designate asubstitute custodian at the time of the transfer, in either case from among thepersons eligible to serve as custodian for that kind of property. The custodianso designated has the rights of a successor custodian.

2. A custodian at any time may designate a trustcompany or an adult other than a transferor as successor custodian by executingand dating an instrument of designation before a subscribing witness other thanthe successor. If the instrument of designation does not contain or is notaccompanied by the resignation of the custodian, the designation of thesuccessor does not take effect until the custodian resigns, dies, becomesincapacitated or is removed.

3. A custodian may resign at any time by deliveringwritten notice to the minor, if the minor has attained the age of 14 years, andto the successor custodian and by delivering the custodial property to thesuccessor custodian.

4. If a custodian is ineligible, dies or becomesincapacitated without having effectively designated a successor and the minorhas attained the age of 14 years, the minor may designate as successorcustodian, in the manner prescribed in subsection 2, an adult member of theminors family, a conservator of the minor or a trust company. If the minor hasnot attained the age of 14 years or fails to act within 60 days after theineligibility, death or incapacity, the conservator of the minor becomes successorcustodian. If the minor has no conservator or the conservator declines to act,the transferor, the legal representative of the transferor or of the custodian,an adult member of the minors family, or any other interested person maypetition the court to designate a successor custodian.

5. A custodian who declines to serve under subsection1 or resigns under subsection 3, or the legal representative of a deceased orincapacitated custodian, as soon as practicable, shall put the custodialproperty and records in the possession and control of the successor custodian.The successor custodian by action may enforce the obligation to delivercustodial property and records and becomes responsible for each item asreceived.

6. A transferor, the legal representative of atransferor, an adult member of the minors family, a guardian of the minor, theconservator of the minor, or the minor if he has attained the age of 14 yearsmay petition the court that, for cause shown in the petition, the custodian beremoved and a successor custodian be designated, other than a transferor, or,in the alternative, that the custodian be required to give bond for theperformance of his duties.

(Added to NRS by 1957, 25; A 1967, 375; 1977, 1027;1983, 14; 1985, 78)

NRS 167.085 Claimsagainst custodial property; liability of custodian and minor.

1. A claim based on:

(a) A contract entered into by a custodian acting in acustodial capacity;

(b) An obligation arising from the ownership or controlof custodial property; or

(c) A tort committed during the custodianship,

may beasserted against the custodial property by proceeding against the custodian inhis custodial capacity, whether or not the custodian or the minor is personallyliable therefor.

2. A custodian is not personally liable:

(a) On a contract properly entered into in hiscustodial capacity unless he fails to reveal that capacity and to identify thecustodianship in the contract; or

(b) For an obligation arising from control of custodialproperty or for a tort committed during the custodianship unless he ispersonally at fault.

3. A minor is not personally liable for an obligationarising from ownership of custodial property or for a tort committed during thecustodianship unless he is personally at fault.

(Added to NRS by 1985, 68)

NRS 167.090 Petitionfor accounting by custodian or determination of responsibility by court;delivery of custodial property and records to successor custodian.

1. The minor, if he has attained the age of 14 years,or the guardian or legal representative of the minor, an adult member of theminors family, or a transferor or his legal representative may petition thecourt for:

(a) An accounting by the custodian or his legalrepresentative; or

(b) A determination of responsibility, as between thecustodial property and the custodian personally, for claims against thecustodial property, unless the responsibility has been adjudicated in an actionpursuant to NRS 167.085 to which theminor or his legal representative was a party.

2. A successor custodian may petition the court for anaccounting by the predecessor custodian.

3. The court, in a proceeding under this chapter orotherwise, may require or permit the custodian or his legal representative toaccount and, if the custodian is removed, shall so require and order deliveryof all custodial property and records to the successor custodian and the executionof all instruments required for the transfer of the custodial property.

(Added to NRS by 1957, 25; A 1985, 80)

NRS 167.095 Transferby custodian to minor. The custodian shalltransfer in an appropriate manner the custodial property to the minor or to theminors estate upon the earlier of:

1. The minors attainment of 18 years of age withrespect to custodial property transferred under NRS 167.023, 167.025, 167.027or 167.029, or the age provided forunder NRS 167.034, whichever is later;or

2. The minors death.

(Added to NRS by 1985, 68; A 1991, 1706)

NRS 167.100 Construction. This chapter must be so applied and construed as toeffectuate its general purpose to make uniform the law of those states whichenact it.

(Added to NRS by 1957, 26; A 1985, 81)

 

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