§ 18-13-17 - Distribution on termination. - Rhode Island Statutes

SECTION 18-13-17

   § 18-13-17  Distribution on termination.– (a) Upon termination of a custodial trust, the custodial trustee shall transferthe unexpended custodial trust property:

   (1) To the beneficiary, if not incapacitated or deceased;

   (2) To the conservator or other recipient designated by thecourt for an incapacitated beneficiary; or

   (3) Upon the beneficiary's death, in the following order:

   (i) As last directed in a writing signed by the deceasedbeneficiary while not incapacitated and received by the custodial trusteeduring the life of the deceased beneficiary;

   (ii) To the survivor of multiple beneficiaries ifsurvivorship is provided for pursuant to § 18-13-6;

   (iii) As designated in the instrument creating the custodialtrust; or

   (iv) To the estate of the deceased beneficiary.

   (b) If, when the custodial trust would otherwise terminate,the distributee is incapacitated, the custodial trust continues for the use andbenefit of the distributee as beneficiary until the incapacity is removed orthe custodial trust is otherwise terminated.

   (c) Death of a beneficiary does not terminate the power ofthe custodial trustee to discharge obligations of the custodial trustee orbeneficiary incurred before the termination of the custodial trust.