§ 18-13-2 - Custodial trust – General. - Rhode Island Statutes

SECTION 18-13-2

   § 18-13-2  Custodial trust – General.– (a) A person may create a custodial trust of property by a written transfer ofthe property to another person, evidenced by registration or by otherinstrument of transfer, executed in any lawful manner, naming as beneficiary anindividual who may be the transferor, in which the transferee is designated, insubstance, as custodial trustee under this chapter.

   (b) A person may create a custodial trust of property by awritten declaration, evidenced by registration of the property or by otherinstrument of declaration executed in any lawful manner, describing theproperty and naming as beneficiary an individual other than the declarant, inwhich the declarant as titleholder is designated, in substance, as custodialtrustee under this chapter. A registration or other declaration of trust forthe sole benefit of the declarant is not a custodial trust under this chapter.

   (c) Title to custodial trust property is in the custodialtrustee and the beneficial interest is in the beneficiary.

   (d) Except as provided in subsection (e) of this section, atransferor may not terminate a custodial trust.

   (e) The beneficiary, if not incapacitated, or the conservatorof an incapacitated beneficiary, may terminate a custodial trust by deliveringto the custodial trustee a writing signed by the beneficiary or conservatordeclaring the termination. If not previously terminated, the custodial trustterminates on the death of the beneficiary.

   (f) Any person may augment existing custodial trust propertyby the addition of other property pursuant to this chapter.

   (g) The transferor may designate, or authorize thedesignation of, a successor custodial trustee in the trust instrument.

   (h) This chapter does not displace or restrict other means ofcreating trusts. A trust whose terms do not conform to this chapter may beenforceable according to its terms under other law.