PROPERTY CODE
TITLE 10. MISCELLANEOUS BENEFICIAL PROPERTY INTERESTS
SUBTITLE A. PERSONS UNDER DISABILITY
CHAPTER 141. TRANSFERS TO MINORS
§ 141.001. SHORT TITLE. This chapter may be cited as
the Texas Uniform Transfers to Minors Act.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 1 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.002. DEFINITIONS. In this chapter:
(1) "Adult" means an individual who is at least 21
years of age.
(2) "Benefit plan" means an employer's plan for the
benefit of an employee or partner or an individual retirement
account.
(3) "Broker" means a person lawfully engaged in the
business of effecting transactions in securities or commodities for
the person's own account or for the account of another.
(4) "Court" means a court with original probate
jurisdiction.
(5) "Custodial property" means:
(A) any interest in property transferred to a
custodian under this chapter; and
(B) the income from and proceeds of that interest
in property.
(6) "Custodian" means a person designated as a
custodian under Section 141.010 or a successor or substitute
custodian designated under Section 141.019.
(7) "Financial institution" means a bank, trust
company, savings institution, or credit union chartered and
supervised under state or federal law.
(8) "Guardian" means a person appointed or qualified
by a court to act as general, limited, or temporary guardian of a
minor's property or a person legally authorized to perform
substantially the same functions.
(9) "Legal representative" means an executor,
independent executor, administrator or independent administrator
of a decedent's estate, an obligor under a benefit plan or other
governing instrument, a successor legal representative, or a person
legally authorized to perform substantially the same functions.
(10) "Member of the minor's family" means the minor's
parent, stepparent, spouse, grandparent, brother, sister, uncle,
or aunt, whether of whole or half blood or by adoption.
(11) "Minor" means an individual who is younger than
21 years of age.
(12) "Transfer" means a transaction that creates
custodial property under Section 141.010.
(13) "Transferor" means a person who makes a transfer
under this chapter.
(14) "Trust company" means a financial institution,
corporation, or other legal entity authorized to exercise general
trust powers.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 2 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.003. SCOPE AND JURISDICTION. (a) This chapter
applies to a transfer that refers to the Texas Uniform Transfers to
Minors Act in the designation under Section 141.010(a) by which the
transfer is made if at the time of the transfer, the transferor, the
minor, or the custodian is a resident of this state or the custodial
property is located in this state. The custodianship created under
Section 141.010 remains subject to this chapter despite a
subsequent change in residence of a transferor, the minor, or the
custodian or the removal of custodial property from this state.
(b) A person designated as custodian under this chapter is
subject to personal jurisdiction in this state with respect to any
matter relating to the custodianship.
(c) A transfer that purports to be made and that is valid
under the Uniform Transfers to Minors Act, the Uniform Gifts to
Minors Act, or a substantially similar act of another state is
governed by the law of the designated state and may be executed and
is enforceable in this state if at the time of the transfer, the
transferor, the minor, or the custodian is a resident of the
designated state or the custodial property is located in the
designated state.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 3 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.004. NOMINATION OF CUSTODIAN. (a) A person
having the right to designate the recipient of property
transferable on the occurrence of a future event may revocably
nominate a custodian to receive the property for a minor
beneficiary on the occurrence of that event by naming the custodian
followed in substance by the words: "as custodian for (name of
minor) under the Texas Uniform Transfers to Minors Act." The
nomination may name one or more persons as substitute custodians to
whom the property must be transferred, in the order named, if the
first nominated custodian dies before the transfer or is unable,
declines, or is ineligible to serve. The nomination may be made in
a will, a trust, a deed, an instrument exercising a power of
appointment, or in a writing designating a beneficiary of
contractual rights that is registered with or delivered to the
payor, issuer, or other obligor of the contractual rights.
(b) A custodian nominated under this section must be a
person to whom a transfer of property of that kind may be made under
Section 141.010(a).
(c) The nomination of a custodian under this section does
not create custodial property until the nominating instrument
becomes irrevocable or a transfer to the nominated custodian is
completed under Section 141.010. Unless the nomination of a
custodian has been revoked, the custodianship becomes effective on
the occurrence of the future event, and the custodian shall enforce
a transfer of the custodial property under Section 141.010.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 4 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.005. TRANSFER BY GIFT OR EXERCISE OF POWER OF
APPOINTMENT. A person may make a transfer by irrevocable gift to,
or the irrevocable exercise of a power of appointment in favor of, a
custodian for the benefit of a minor under Section 141.010.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 5 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.006. TRANSFER AUTHORIZED BY WILL OR TRUST. (a) A
legal representative or trustee may make an irrevocable transfer
under Section 141.010 to a custodian for a minor's benefit as
authorized in the governing will or trust.
(b) If the testator or settlor has nominated a custodian
under Section 141.004 to receive the custodial property, the
transfer must be made to that person.
(c) If the testator or settlor has not nominated a custodian
under Section 141.004, or all persons nominated as custodian die
before the transfer or are unable, decline, or are ineligible to
serve, the legal representative or the trustee shall designate the
custodian from among those persons eligible to serve as custodian
for property of that kind under Section 141.010(a).
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 6 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.007. OTHER TRANSFER BY FIDUCIARY. (a) Subject
to Subsections (b) and (c), a guardian, legal representative, or
trustee may make an irrevocable transfer to another adult or trust
company as custodian for a minor's benefit under Section 141.010 in
the absence of a will or under a will or trust that does not contain
an authorization to do so.
(b) With the approval of the court supervising the
guardianship, a guardian may make an irrevocable transfer to
another adult or trust company as custodian for the minor's benefit
under Section 141.010.
(c) A transfer under Subsection (a) or (b) may be made only
if:
(1) the legal representative or trustee considers the
transfer to be in the best interest of the minor;
(2) the transfer is not prohibited by or inconsistent
with provisions of the applicable will, trust agreement, or other
governing instrument; and
(3) the transfer is authorized by the court if it
exceeds $10,000 in value.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 7 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.008. TRANSFER BY OBLIGOR. (a) Subject to
Subsections (b) and (c), a person who is not subject to Section
141.006 or 141.007 and who holds property of or owes a liquidated
debt to a minor who does not have a guardian may make an irrevocable
transfer to a custodian for the benefit of the minor under Section
141.010.
(b) If a person who has the right to nominate a custodian
under Section 141.004 has nominated a custodian under that section
to receive the custodial property, the transfer must be made to that
person.
(c) If a custodian has not been nominated under Section
141.004, or all persons nominated as custodian die before the
transfer or are unable, decline, or are ineligible to serve, a
transfer under this section may be made to an adult member of the
minor's family or to a trust company unless the property exceeds
$10,000 in value.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 8 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.009. RECEIPT FOR CUSTODIAL PROPERTY. A written
acknowledgment of delivery by a custodian constitutes a sufficient
receipt and discharge for custodial property transferred to the
custodian under this chapter.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 9 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.010. MANNER OF CREATING CUSTODIAL PROPERTY AND
EFFECTING TRANSFER; DESIGNATION OF INITIAL CUSTODIAN;
CONTROL. (a) Custodial property is created and a transfer is made
when:
(1) an uncertificated security or a certificated
security in registered form is:
(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 Texas Uniform Transfers to Minors Act"; or
(B) delivered if in certificated form, or any
document necessary for the transfer of an uncertificated security
is delivered, 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);
(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 Texas Uniform
Transfers to Minors Act";
(3) the ownership of a life or endowment insurance
policy or annuity contract is:
(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 Texas Uniform Transfers to Minors Act"; 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 Texas Uniform Transfers to Minors
Act";
(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 Texas
Uniform Transfers to Minors Act";
(5) an interest in real property is conveyed by
instrument recorded in the real property records in the county in
which the real property is located to 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 Texas
Uniform Transfers to Minors Act";
(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:
(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 Texas Uniform Transfers to Minors Act"; or
(B) delivered to an adult other than the
transferor or to a trust company, endorsed to that person followed
in substance by the words: "as a custodian for (name of minor)
under the Texas Uniform Transfers to Minors Act"; or
(7) an interest in any property not described in
Subdivisions (1)-(6) 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).
(b) An instrument in the following form satisfies the
requirements of Subsections (a)(1)(B) and (7):
TRANSFER UNDER THE TEXAS 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 Texas Uniform
Transfers to Minors Act, 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 Texas 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.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 10 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.011. SINGLE CUSTODIANSHIP. A transfer may be made
only for one minor, and only one person may be the custodian. All
custodial property held under this chapter by the same custodian
for the benefit of the same minor constitutes a single
custodianship.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 11 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.012. VALIDITY AND EFFECT OF TRANSFER. (a) The
validity of a transfer made in a manner prescribed by this chapter
is not affected by the:
(1) transferor's failure to comply with Section
141.010(c) concerning possession and control;
(2) 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 Section
141.010(a); or
(3) death or incapacity of a person nominated under
Section 141.004 or designated under Section 141.010 as custodian or
the disclaimer of the office by that person.
(b) A transfer made under Section 141.010 is irrevocable,
and the custodial property is indefeasibly vested in the minor. The
custodian has all the rights, powers, duties, and authority
provided in this chapter, and the minor or the minor's legal
representative does not have any right, power, duty, or authority
with respect to the custodial property except as provided by this
chapter.
(c) By making a transfer, the transferor incorporates all
the provisions of this chapter in the disposition and grants to the
custodian, or to any third person dealing with a person designated
as custodian, the respective powers, rights and immunities provided
by this chapter.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 12 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.013. CARE OF CUSTODIAL PROPERTY. (a) A
custodian shall:
(1) take control of custodial property;
(2) register or record title to custodial property if
appropriate; and
(3) collect, hold, manage, sell, convey, invest, and
reinvest custodial property.
(b) In dealing with custodial property, a custodian shall
observe the standard of care that would be observed by a prudent
person dealing with property of another and is not limited by any
other statute restricting investments by fiduciaries. If a
custodian has a special skill or expertise, the custodian shall use
that skill or expertise. However, a custodian, in the custodian's
discretion and without liability to the minor or the minor's
estate, may retain any custodial property received from a
transferor.
(c) A custodian may invest in or pay premiums on life
insurance or endowment policies on the life of:
(1) the minor only if the minor or the minor's estate
is the sole beneficiary; or
(2) another person in whom the minor has an insurable
interest only to the extent that the minor, the minor's estate, or
the custodian in the capacity of the custodian is the irrevocable
beneficiary.
(d) A custodian at all times shall keep custodial property
separate and distinct from all other property in a manner
sufficient to identify it clearly as custodial property of the
minor. Custodial property consisting of an undivided interest is
so identified if the minor's interest is held as a tenant in common
and is fixed. Custodial property subject to recordation is so
identified if it is recorded, and custodial property subject to
registration is so identified if it is registered, or held in an
account designated, in the name of the custodian followed in
substance by the words: "as custodian for ____________________
(name of minor) under the Texas Uniform Transfers to Minors Act."
(e) A custodian shall keep records of all transactions with
respect to custodial property, including information necessary for
the preparation of the minor's tax returns, and shall make the
records available for inspection at reasonable intervals by a
parent or legal representative of the minor or by the minor if the
minor is at least 14 years of age.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 13 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.014. POWERS OF CUSTODIAN. (a) A custodian,
acting in a custodial capacity, has all the rights, powers, and
authority over custodial property that unmarried adult owners have
over their own property, but a custodian may exercise those rights,
powers, and authority in that capacity only.
(b) This section does not relieve a custodian from liability
for breach of Section 141.013.
Amended by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1,
1995. Renumbered from V.T.C.A., Property Code § 14 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.015. USE OF CUSTODIAL PROPERTY. (a) A custodian
may deliver or pay to the minor or expend for the minor's benefit as
much of the custodial property as the custodian considers advisable
for the use and benefit of the minor, without court order and
without regard to:
(1) the duty or ability of the custodian personally or
of any other person to support the minor; or
(2) any other income or property of the minor that may
be applicable or available for that purpose.
(b) On petition of an interested person or the minor if the
minor is at least 14 years of age, the court may order the custodian
to deliver or pay to the minor or expend for the minor's benefit as
much of the custodial property as the court considers advisable for
the use and benefit of the minor.
(c) A delivery, payment, or expenditure under this section
is in addition to, not in substitution for, and does not affect any
obligation of a person to support the minor.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 15 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.016. CUSTODIAN'S EXPENSES, COMPENSATION, AND
BOND. (a) A custodian is entitled to reimbursement from
custodial property for reasonable expenses incurred in the
performance of the custodian's duties.
(b) Except for one who is a transferor under Section
141.005, a custodian has a noncumulative election during each
calendar year to charge reasonable compensation for services
performed by the custodian during that year.
(c) Except as provided by Section 141.019(f), a custodian is
not required to give a bond.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 16 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.017. EXEMPTION OF THIRD PERSON FROM LIABILITY. A
third person, in good faith and without court order, may act on the
instructions of or otherwise deal with any person purporting to
make a transfer or act in the capacity of a custodian and, in the
absence of knowledge, is not responsible for determining the:
(1) validity of the purported custodian's designation;
(2) propriety of, or the authority under this chapter
for, any act of the purported custodian;
(3) validity or propriety under this chapter of any
instrument or instructions executed or given by the person
purporting to make a transfer or by the purported custodian; or
(4) propriety of the application of the minor's
property delivered to the purported custodian.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 17 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.018. LIABILITY TO THIRD PERSON. (a) A claim
based on a contract entered into by a custodian acting in a
custodial capacity, an obligation arising from the ownership or
control of custodial property, or a tort committed during the
custodianship may be asserted against the custodial property by
proceeding against the custodian in the custodian's custodial
capacity, whether or not the custodian or the minor is personally
liable for the claim.
(b) A custodian is not personally liable:
(1) on a contract properly entered into in the
custodian's custodial capacity unless the custodian fails to reveal
that capacity and to identify the custodianship in the contract; or
(2) for an obligation arising from control of
custodial property or for a tort committed during the custodianship
unless the custodian is personally at fault.
(c) A minor is not personally liable for an obligation
arising from ownership of custodial property or for a tort
committed during the custodianship unless the minor is personally
at fault.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 18 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.019. RENUNCIATION, RESIGNATION, DEATH, OR REMOVAL
OF CUSTODIAN; DESIGNATION OF SUCCESSOR CUSTODIAN. (a) A person
nominated to serve as a custodian under Section 141.004 or
designated to serve as a custodian under Section 141.010 may
decline to serve as custodian by delivering written notice to the
person who made the nomination or to the transferor's legal
representative. If the event giving rise to a transfer has not
occurred and no substitute custodian who is able, willing, and
eligible to serve was nominated under Section 141.004, the person
who made the nomination may nominate a substitute custodian under
Section 141.004; otherwise the transferor or the transferor's
legal representative shall designate a substitute custodian at the
time of the transfer, in either case from among the persons eligible
to serve as custodian for that kind of property under Section
141.010(a). A substitute custodian designated under this section
has the rights of a successor custodian.
(b) A custodian at any time may designate as successor
custodian a trust company or an adult other than a transferor under
Section 141.005 by executing and dating an instrument of
designation before a subscribing witness other than the successor.
If the instrument of designation does not contain or is not
accompanied by the custodian's resignation, the designation of the
successor does not take effect until the custodian resigns, dies,
becomes incapacitated, or is removed.
(c) A custodian may resign at any time by delivering:
(1) written notice to the successor custodian and to
the minor if the minor is at least 14 years of age; and
(2) the custodial property to the successor custodian.
(d) If a custodian is ineligible, dies, or becomes
incapacitated without having effectively designated a successor
and the minor is at least 14 years of age, the minor may designate as
successor custodian an adult member of the minor's family, a
guardian of the minor, or a trust company in the manner prescribed
by Subsection (b). If the minor is younger than 14 years of age or
fails to act within 60 days after the ineligibility, death, or
incapacity of the custodian, the minor's guardian becomes successor
custodian. If the minor has no guardian or the minor's guardian
declines to act, the transferor, the legal representative of the
transferor or of the custodian, an adult member of the minor's
family, or any other interested person may petition the court to
designate a successor custodian.
(e) As soon as practicable, a custodian who declines to
serve under Subsection (a) or resigns under Subsection (c), or the
legal representative of a deceased or incapacitated custodian,
shall put the custodial property and records in the possession and
control of the successor custodian. The successor custodian by
action may enforce the obligation to deliver custodial property and
records and becomes responsible for each item as received.
(f) A transferor, the legal representative of a transferor,
an adult member of the minor's family, a guardian of the person of
the minor, the guardian of the minor, or the minor if the minor is at
least 14 years of age may petition the court to:
(1) remove the custodian for cause and designate a
successor custodian other than a transferor under Section 141.005;
or
(2) require the custodian to give appropriate bond.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 19 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.020. ACCOUNTING BY AND DETERMINATION OF
LIABILITY. (a) A minor who is at least 14 years of age, the
minor's guardian of the person or legal representative, an adult
member of the minor's family, a transferor, or a transferor's legal
representative may petition the court for:
(1) an accounting by the custodian or the custodian's
legal representative; or
(2) a determination of responsibility, as between the
custodial property and the custodian personally, for claims against
the custodial property unless the responsibility has been
adjudicated in an action under Section 141.018 to which the minor or
the minor's legal representative was a party.
(b) A successor custodian may petition the court for an
accounting by the predecessor custodian.
(c) The court, in a proceeding under this chapter or in any
other proceeding, may require or permit the custodian or the
custodian's legal representative to account.
(d) If a custodian is removed under Section 141.019(f), the
court shall require an accounting and order delivery of the
custodial property and records to the successor custodian and the
execution of all instruments required for transfer of the custodial
property.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 20 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.021. TERMINATION OF CUSTODIANSHIP. The custodian
shall transfer in an appropriate manner the custodial property to
the minor or to the minor's estate on the earlier of the date:
(1) the minor attains 21 years of age, with respect to
custodial property transferred under Section 141.005 or 141.006;
(2) the minor attains the age of majority under the
laws of this state other than this chapter, with respect to
custodial property transferred under Section 141.007 or 141.008;
or
(3) the minor's death.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 21 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.022. APPLICABILITY. Except as provided by
Section 141.025, this chapter applies to a transfer within the
scope of Section 141.003 made after September 1, 1995, if:
(1) the transfer purports to have been made under the
Texas Uniform Gifts to Minors Act; or
(2) the instrument by which the transfer purports to
have been made uses in substance the designation "as custodian
under the Uniform Gifts to Minors Act" or "as custodian under the
Uniform Transfers to Minors Act" of any other state, and the
application of this chapter is necessary to validate the transfer.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 221, § 1, eff. Sept. 1,
1997. Renumbered from V.T.C.A., Property Code § 22 by Acts 1997,
75th Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.023. EFFECT ON EXISTING CUSTODIANSHIPS. (a) Any
transfer of custodial property under this chapter made before
September 1, 1995, is validated notwithstanding that there was no
specific authority in this chapter for the coverage of custodial
property of that kind or for a transfer from that source at the time
the transfer was made.
(b) Sections 141.002 and 141.021, with respect to the age of
a minor for whom custodial property is held under this chapter, do
not apply to custodial property held in a custodianship that
terminated because the minor attained the age of 18 after August 26,
1973, and before September 1, 1995.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 23 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.024. UNIFORMITY OF APPLICATION AND
CONSTRUCTION. This chapter shall be applied and construed to
effect its general purpose, to make uniform the law with respect to
the subject of this chapter among states enacting that law.
Added by Acts 1995, 74th Leg., ch. 1043, § 1, eff. Sept. 1, 1995.
Renumbered from V.T.C.A., Property Code § 24 by Acts 1997, 75th
Leg., ch. 165, § 31.01(72), eff. Sept. 1, 1997.
§ 141.025. ADDITIONAL TRANSFERS TO CUSTODIANSHIPS IN
EXISTENCE BEFORE EFFECTIVE DATE OF ACT. (a) This section applies
only to a transfer within the scope of Section 141.003 made after
September 1, 1995, to a custodian of a custodianship established
before September 1, 1995, under the Texas Uniform Gifts to Minors
Act.
(b) This chapter does not prevent a person from making
additional transfers to a custodianship described by Subsection
(a). On the direction of the transferor or custodian, custodial
property that is transferred to the custodianship shall be
commingled with the custodial property of the custodianship
established under the Texas Uniform Gifts to Minors Act. The
additional transfers to the custodianship shall be administered and
distributed on termination of the custodianship, as prescribed by
this chapter, except that for purposes of Section 141.021, the
custodian shall transfer the custodial property to:
(1) the beneficiary on the date the beneficiary
attains 18 years of age or an earlier date as prescribed by Section
141.021; or
(2) the beneficiary's estate if the individual dies
before the date prescribed by Subdivision (1).
Added by Acts 1997, 75th Leg., ch. 221, § 2, eff. Sept. 1, 1997.
Amended by Acts 1997, 75th Leg., ch. 165, § 31.01(72), eff. Sept.
1, 1997. Renumbered from V.T.C.A., Property Code § 25 by Acts
1999, 76th Leg., ch. 62, § 19.01(91), eff. Sept. 1, 1999.
