§ 33B-2. Custodial trust; general. - North Carolina Statutes

§ 33B‑2.  Custodialtrust; general.

(a)        A person may createa custodial trust of property by a written transfer of the property to a trustcompany or an adult other than the transferor executed in any lawful manner,naming as beneficiary an individual, who may be the transferor, in which thetransferee is designated, in substance, as custodial trustee under the NorthCarolina Uniform Custodial Trust Act. A transfer is executed in a lawful mannerif the formalities, if any, of the transfer of the particular propertynecessary under general principles of law are satisfied.

(b)        An adult may createa custodial trust of property by a written declaration which names asbeneficiary an individual other than the declarant. The declaration shall beevidenced by registration of the property or by other instrument of declarationexecuted in any lawful manner, describing the property and designating thedeclarant, in substance, as custodial trustee under the North Carolina UniformCustodial Trust Act. A registration or other declaration of trust for the solebenefit of the declarant is not a custodial trust under this act. Aregistration or declaration is executed in a lawful manner if the formalities,if any, of the transfer of the beneficial interest in the particular propertyunder general principles of law are satisfied.

(c)        Title to custodialtrust property is in the custodial trustee, and the beneficial interest is inthe beneficiary.

(d)        Except as providedin subsection (e) of this section, a transferor may not terminate a custodialtrust.

(e)        The beneficiary, ifnot incapacitated, or the guardian of the estate of an incapacitatedbeneficiary, may terminate a custodial trust by delivering to the custodialtrustee a writing signed by the beneficiary or guardian of the estate declaringthe termination. If not previously terminated, the custodial trust terminateson the death of the beneficiary.

(f)         Any person mayaugment existing custodial trust property by the addition of other propertypursuant to a written instrument satisfying the requirements of subsections (a)or (b) of this section.

(g)        The transferor maydesignate, or authorize the designation of, a successor custodial trustee inthe trust instrument.

(h)        This act does notdisplace or restrict other means of creating trusts. A trust, the terms ofwhich do not conform to this act, may be enforceable according to its termsunder the law. (1995, c. 486, s. 1.)