404.565. Multiple beneficiaries of custodial property, administered, how--termination of custodianship, death of beneficiaries, effect. - Missouri Statutes

Multiple beneficiaries of custodial property, administered,how--termination of custodianship, death of beneficiaries,effect.

404.565. 1. During the lifetimes of multiple beneficiaries,ownership of custodial property between a husband and wife ispresumed to be held as tenants by the entireties and among otherpersons, custodial property is presumed to be of equal undividedinterests in the custodial property which are indefeasibly vestedin the beneficiaries as tenants in common, subject to theprovisions of sections 404.400 to 404.650, unless the titledocument provides otherwise or there is clear and convincingwritten evidence of a different intent of the beneficiaries orthe persons creating the personal custodianship.

2. Unless held for a husband and wife as tenants by theentireties or otherwise directed by the beneficiaries or governedby a custodial agreement, the personal custodian shall administerthe custodial property as separate undivided interests for theuse and benefit of the custodial beneficiaries during theirlifetimes and shall separately account to each beneficiary forthe administration of the beneficiary's interest in the custodialproperty.

3. During the lifetimes of the multiple beneficiaries, thepersonal custodian shall follow the directions of thebeneficiaries who are not incapacitated. If one of thebeneficiaries becomes incapacitated, the personal custodian shallfollow the directions of the beneficiaries who are notincapacitated to the extent that the directions do not conflictwith the rights of the incapacitated beneficiary in the custodialproperty.

4. If one of two or more beneficiaries who has a right tosever his or her interest in the custodial property demandstermination of the personal custodianship, the personal custodianshall deliver to the terminating beneficiary custodial propertyin an amount equal in value to the beneficiary's interest in thecustodial property, free and clear of the custodianship, and thecustodianship continues for the remaining beneficiaries.

5. At death of one of two or more beneficiaries who holdtheir interest in the custodial property as tenants in common,the interest of the decedent in the custodial property shall bedistributed in accordance with a transfer on death directionexecuted under subsection 2 of section 404.560 and, if none, tothe decedent's estate.

6. At death of one of two or more beneficiaries, who holdtheir interests in the custodial property as joint tenants withright of survivorship or as tenants by the entirety, thecustodial property belongs to the surviving beneficiary orbeneficiaries as against the estate of the decedent. If thereare two or more surviving beneficiaries, their respectiveownerships during lifetime shall be in proportion to theirprevious ownership interest, augmented by an equal share for eachsurvivor of any interest the deceased beneficiary may have ownedin the custodial property immediately before death, unless thedecedent is the spouse of a beneficiary, in which case, theinterest owned by the decedent shall be applied solely to augmentthe ownership interest of the surviving spouse in the custodialproperty, and the right of survivorship continues as between thesurviving beneficiaries. When only one of two or morebeneficiaries survives, the personal custodianship shall in allrespects become a personal custodianship of property for a singleindividual.

(L. 1989 H.B. 145)