Section 13-303 - Contingent transfers. - Maryland Statutes

§ 13-303. Contingent transfers.
 

    (a)  Right to designate custodian.- A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words: "as custodian for

______________ (name of minor) under the Maryland Uniform Transfers to Minors Act".

(b)  Nomination to include substitute custodians.- The nomination may name 1 or more persons as substitute custodians to whom the property must be transferred, in the order named, if the 1st nominated custodian dies before the transfer or is unable, declines, or is ineligible to serve. 

(c)  How nominations made.- 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 which is registered with or delivered to the payor, issuer, or other obligor of the contractual rights. 

(d)  Qualification of custodian.- A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under § 13-309 (a) of this subtitle. 

(e)  Effect of nomination; happening of future event.-  

(1) 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 § 13-309 of this subtitle. 

(2) Unless the nomination of a custodian has been revoked, upon the occurrence of the future event the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to § 13-309 of this subtitle. 
 

[1989, ch. 638.]