Chapter 13 - Transfers To Minors

WYOMING STATUTES AND CODES

Chapter 13 - Transfers To Minors

CHAPTER 13 - TRANSFERS TO MINORS

34-13-101. Repealed by Laws 1987, ch. 201, 2.

34-13-102. Repealed by Laws 1987, ch. 201, 2.

34-13-103. Repealed by Laws 1987, ch. 201, 2.

34-13-104. Repealed by Laws 1987, ch. 201, 2.

34-13-105. Repealed by Laws 1987, ch. 201, 2.

34-13-106. Repealed by Laws 1987, ch. 201, 2.

34-13-107. Repealed by Laws 1987, ch. 201, 2.

34-13-108. Repealed by Laws 1987, ch. 201, 2.

34-13-109. Repealed by Laws 1987, ch. 201, 2.

34-13-110. Repealed by Laws 1987, ch. 201, 2.

34-13-111. Reserved.

34-13-112. Reserved.

34-13-113. Reserved.

34-13-114. Definitions.

(a) As used in this act:

(i) "Adult" means an individual who has attained theage of twenty-one (21) years;

(ii) "Benefit plan" means an employer's plan for thebenefit of an employee or partner;

(iii) "Broker" means a person lawfully engaged in thebusiness of effecting transactions in securities or commodities for theperson's own account or for the account of others;

(iv) "Conservator" means a person appointed orqualified by a court to act as general, limited or temporary guardian of aminor's property or a person legally authorized to perform substantially thesame functions;

(v) "Court" means the district court;

(vi) "Custodial property" means any interest inproperty transferred to a custodian under this act and the income from andproceeds of that interest in property;

(vii) "Custodian" means a person so designated underW.S. 34-13-122 or a successor or substitute custodian designated under W.S.34-13-131;

(viii) "Financial institution" means a bank, trustcompany or a savings institution or credit union chartered and supervised understate or federal law;

(ix) "Legal representative" means an individual'spersonal representative or conservator;

(x) "Member of the minor's family" means the minor'sparent, stepparent, spouse, grandparent, brother, sister, uncle or aunt,whether of whole or half blood or by adoption;

(xi) "Minor" means an individual who has not attainedthe age of twenty-one (21) years;

(xii) "Person" means an individual, corporation,organization or other legal entity;

(xiii) "Personal representative" means an executor,administrator, successor personal representative or special administrator of adecedent's estate or a person legally authorized to perform substantially thesame functions;

(xiv) "Transfer" means a transaction that createscustodial property under W.S. 34-13-122;

(xv) "Transferor" means a person who makes a transferunder this act;

(xvi) "Trust company" means any legal entity authorizedto exercise general trust powers.

34-13-115. Scope and jurisdiction.

(a) This act applies to a transfer that refers to this act inthe designation under W.S. 34-13-122(a) by which the transfer is made if at thetime of the transfer the transferor, the minor or the custodian is a residentof this state or the custodial property is located in this state. Thecustodianship so created remains subject to this act despite a subsequentchange in residence of a transferor, the minor or the custodian or the removalof custodial property from this state.

(b) A person designated as custodian under this act is subjectto personal jurisdiction in this state with respect to any matter relating tothe custodianship.

(c) A transfer that purports to be made and which is validunder the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act or asubstantially similar act of another state is governed by the law of the designatedstate and may be executed and enforced in this state if at the time of thetransfer, the transferor, the minor or the custodian is a resident of thedesignated state or the custodial property is located in the designated state.

34-13-116. Nomination of future custodian.

(a) A person having the right to designate the recipient ofproperty transferable upon the occurrence of a future event may revocablynominate a future custodian to receive the property for a minor beneficiaryupon the occurrence of the event by naming the future custodian followed insubstance by the words: "as custodian for .... (name of minor) under theWyoming Uniform Transfers to Minors Act". The nomination may name one (1)or more persons as substitute future custodians to whom the property shall betransferred, in the order named, if the first nominated future custodian diesbefore the transfer, or is unable, declines or is ineligible to serve. Thenomination may be made in a will, a trust, an instrument exercising a power ofappointment or in a writing designating a beneficiary of contractual rightswhich is delivered to the payor, issuer or other obligor of the contractualrights.

(b) A future custodian nominated under this section shall be aperson to whom a transfer of property of that kind may be made under W.S.34-13-122(a).

(c) The nomination of a future custodian under this sectiondoes not create custodial property until the nominating instrument becomesirrevocable or a transfer to the nominated custodian is completed under W.S.34-13-122. Unless the nomination of a future custodian has been revoked, uponthe occurrence of the future event the custodianship becomes effective and thecustodian shall enforce a transfer of the custodial property pursuant to W.S. 34-13-122.

34-13-117. Transfer by gift or exercise of power of appointment.

Aperson may make a transfer by irrevocable gift to, or the irrevocable exerciseof a power of appointment in favor of, a custodian for the benefit of a minorpursuant to W.S. 34-13-122.

34-13-118. Transfer authorized by will or trust.

(a) A personal representative or trustee may make anirrevocable transfer pursuant to W.S. 34-13-122 to a custodian for the benefitof a minor as authorized in the governing will or trust.

(b) If the testator or settlor has nominated a future custodianunder W.S. 34-13-116(a) to receive the custodial property, the transfer shallbe made to that person.

(c) If the testator or settlor has not nominated a futurecustodian or all persons nominated as future custodian die before the transferor are unable, decline or are ineligible to serve, the personal representativeor the trustee, as the case may be, shall designate the custodian from amongthose eligible to serve as custodian for property of that kind under W.S.34-13-122(a).

34-13-119. Other transfer by fiduciary.

(a) Subject to subsection (c) of this section, a personalrepresentative or trustee may make an irrevocable transfer to another adult ortrust company as custodian for the benefit of a minor pursuant to W.S.34-13-122, in the absence of a will or under a will or trust that does notcontain an authorization to do so.

(b) Subject to subsection (c) of this section, a conservatormay make an irrevocable transfer to another adult or trust company as custodianfor the benefit of the minor pursuant to W.S. 34-13-122.

(i) The personal representative, trustee or conservatorconsiders the transfer to be in the best interest of the minor;

(ii) The transfer is not prohibited by or inconsistent withprovisions of the applicable will, trust agreement or other governinginstrument; and

(iii) The transfer is authorized by the court if it exceeds tenthousand dollars ($10,000.00) in value.

34-13-120. Transfer by obligor.

(a) Subject to subsections (b) and (c) of this section, aperson not subject to W.S. 34-13-118 or 34-13-119 who holds property of or owesa liquidated debt to a minor not having a conservator may make an irrevocabletransfer to a custodian for the benefit of the minor pursuant to W.S.34-13-122.

(b) If a person having the right to do so under W.S.34-13-116(a) has nominated a future custodian to receive the custodialproperty, the transfer shall be made to that person.

(c) If no future custodian has been nominated, or all personsnominated as future custodian die before the transfer or are unable, decline orare ineligible to serve, a transfer under this section may be made to an adultmember of the minor's family or to a trust company unless the property exceedsten thousand dollars ($10,000.00) in value.

34-13-121. Receipt for custodial property.

Awritten receipt of the custodian constitutes a sufficient release and dischargefor custodial property transferred to the custodian pursuant to this act.

34-13-122. Manner of creating custodial property and effectingtransfer; designation of initial custodian; control.

(a) Custodial property is created and a transfer is effectedwhen:

(i) An uncertificated security or a certificated security inregistered form is either:

(A) Registered in the name of the transferor, an adult otherthan the transferor or a trust company, followed in substance by the words:"as custodian for .... (name of minor) under the Wyoming Uniform Transfersto Minors Act"; or

(B) Delivered if in certificated form, or any documentnecessary for an uncertificated security is delivered, together with anynecessary endorsement to an adult other than the transferor or to a trustcompany as custodian, accompanied by an instrument in substantially the formset forth in subsection (b) of this section.

(ii) Money is paid or delivered to a broker or financialinstitution for credit to an account in the name of the transferor, an adultother than the transferor or a trust company, followed in substance by thewords: "as custodian for .... (name of minor) under the Wyoming UniformTransfers to Minors Act";

(iii) The ownership of a life or endowment insurance policy orannuity contract is either:

(A) Registered with the issuer in the name of the transferor,an adult other than the transferor or a trust company, followed in substance bythe words: "as custodian for .... (name of minor) under the WyomingUniform Transfers to Minors Act"; or

(B) Assigned in writing to an adult other than the transferoror to a trust company whose name in the assignment is followed in substance bythe words: "as custodian for .... (name of minor) under the Wyoming UniformTransfers to Minors Act".

(iv) An irrevocable exercise of a power of appointment or anirrevocable present right to future payment under a contract is the subject ofa written notification delivered to the payor, issuer or other obligor that theright is transferred to the transferor, an adult other than the transferor or atrust company, whose name in the notification is followed in substance by thewords: "as custodian for .... (name of minor) under the Wyoming UniformTransfers to Minors Act";

(v) An interest in real property is recorded in the name of thetransferor, an adult other than the transferor or a trust company, followed insubstance by the words: "as custodian for .... (name of minor) under theWyoming Uniform Transfers to Minors Act";

(vi) A certificate of title issued by a department or agency ofa state or of the United States which evidences title to tangible personalproperty is either:

(A) Issued in the name of the transferor, an adult other thanthe transferor or a trust company, followed in substance by the words: "ascustodian for .... (name of minor) under the Wyoming Uniform Transfers toMinors Act"; or

(B) Delivered to an adult other than the transferor or to atrust company, endorsed to that person followed in substance by the words:"as custodian for .... (name of minor) under the Wyoming Uniform Transfersto Minors Act".

(vii) An interest in any property not described in paragraphs (i)through (vi) of this section is transferred to an adult other than the transferoror to a trust company by a written instrument in substantially the form setforth in subsection (b) of this section.

(b) An instrument in the following form satisfies therequirements of subparagraph (a)(i)(B) and paragraph (a)(vii) of this section:

"TRANSFER UNDER THE WYOMING

UNIFORM TRANSFERS TO MINORS ACT

I, .... (name of transferor or name andrepresentative capacity if a fiduciary) hereby transfer to .... (name ofcustodian), as custodian for .... (name of minor) under the Wyoming Uniform Transfersto Minors Act, the following: (insert a description of the custodial propertysufficient to identify it).

Dated: ....

....

(Signature)

....(name of custodian) acknowledges receipt of the property described above ascustodian for the minor named above under the Wyoming Uniform Transfers toMinors Act.

Dated ....

...."

(Signature of Custodian)

34-13-123. Single custodianship.

Atransfer may be made for only one (1) minor, and only one (1) person may be thecustodian. All custodial property held under this act by the same custodian forthe benefit of the same minor constitutes a single custodianship.

34-13-124. Validity and effect of transfer.

(a) The validity of a transfer made in a manner prescribed inthis act is not affected by:

(i) Failure of the transferor to comply with W.S. 34-13-122(c)concerning possession and control;

(ii) Designation of an ineligible custodian, except designationof the transferor in the case of property for which the transferor isineligible to serve as custodian under W.S. 34-13-122(a); or

(iii) Death or incapacity of the person nominated under W.S.34-13-116 or designated under W.S. 34-13-122 as custodian or the disclaimer ofthe office by that person.

(b) A transfer made pursuant to W.S. 34-13-122 is irrevocable,and the custodial property is indefeasibly vested in the minor, but thecustodian has all the rights, powers, duties and authority provided in thisact, and neither the minor nor the minor's legal representative has any right,power, duty or authority with respect to the custodial property except asprovided in this act.

(c) By making a transfer pursuant to this act, the transferorincorporates in the disposition all the provisions of this act and grants tothe custodian, and to any third person dealing with a person designated ascustodian, the respective powers, rights and immunities provided in this act.

34-13-125. Care of custodial property.

(a) A custodian shall:

(i) Take control of custodial property;

(ii) Register or record title to custodial property ifappropriate; and

(iii) Collect, hold, manage, invest and reinvest custodialproperty.

(b) In dealing with custodial property, a custodian shallobserve the standard of care that would be observed by a prudent person dealingwith property of another and is not limited by any other statute restrictinginvestments by fiduciaries. If a custodian has special skills or is namedcustodian on the basis of representations of special skills or expertise, thecustodian is under a duty to use those skills. However, a custodian, in thecustodian's discretion and without liability to the minor or the minor's estate,may retain any custodial property received from a transferor.

(i) The life of the minor only if the minor or the minor'sestate is the sole beneficiary; or

(ii) The life of another person in whom the minor has aninsurable interest only to the extent that the minor, the minor's estate or thecustodian in the capacity of custodian is the irrevocable beneficiary.

(d) A custodian at all times shall keep custodial propertyseparate and distinct from all other property in a manner sufficient toidentify it clearly as custodial property of the minor. Custodial propertyconsisting of an undivided interest is so identified if the minor's interest isheld as a tenant in common and is fixed. Custodial property subject torecordation is so identified if it is recorded, and custodial property subjectto registration is so identified if it is either registered, or held in anaccount designated, in the name of the custodian, followed in substance by thewords: "as a custodian for .... (name of minor) under the Wyoming UniformTransfers to Minors Act".

(e) A custodian shall keep records of all transactions withrespect to custodial property, including information necessary for thepreparation of the minor's tax returns and shall make them available forinspection at reasonable intervals by a parent or legal representative of theminor or by the minor if the minor has attained the age of fourteen (14) years.

34-13-126. Powers of custodian.

(a) A custodian acting in the capacity of custodian has all therights, powers and authority over custodial property that unmarried adultowners have over their own property, but a custodian may exercise any of therights, powers and authority over custodial property only in the capacity ofcustodian and not otherwise.

(b) This section does not relieve a custodian from liabilityfor breach of the provisions of W.S. 34-13-125.

34-13-127. Use of custodial property.

(a) A custodian may deliver or pay to the minor or expend forthe minor's benefit so much or all of the custodial property as the custodianconsiders advisable for the use and benefit of the minor, without court orderand without regard to:

(i) The duty or ability of the custodian personally or of anyother person to support the minor; or

(ii) Any other income or property of the minor which may beapplicable or available for that purpose.

(b) The court, on the petition of an interested person or theminor if the minor has attained the age of fourteen (14) years, may order thecustodian to deliver or pay to the minor or expend for the minor's benefit somuch of the custodial property as the court considers advisable for the use andbenefit of the minor.

(c) A delivery, payment or expenditure under this section is inaddition to, not in substitution for, and does not affect, the obligation ofany person to support the minor.

34-13-128. Custodian's expenses; compensation and bond.

(a) A custodian is entitled to reimbursement from custodialproperty for reasonable expenses incurred in the performance of the custodian'sduties.

(b) Except for a custodian who is a transferor under W.S.34-13-117, a custodian has a noncumulative election during each calendar yearto charge reasonable compensation for services performed during that year.

(c) A custodian is not required to give a bond for theperformance of the custodian's duties, except as provided in W.S. 34-13-131(f).

34-13-129. Exemption of third persons from liability.

(a) A third person in good faith and without court order mayact on the instructions of or otherwise deal with any person purporting to makea transfer under this act or purporting to act in the capacity of a custodianand, in the absence of actual knowledge, is not responsible for determining:

(i) The validity of the purported custodian's designation;

(ii) The regularity of, or the authority under this act for, anyact of the purported custodian;

(iii) The validity or propriety under this act of any instrumentor instructions executed or given either by the person purporting to make atransfer under this act or by the purported custodian; or

(iv) The propriety of the application of any property of theminor delivered to the purported custodian.

34-13-130. Liability to third persons.

(a) A claim based on a contract entered into by a custodianacting as such, on an obligation arising from the ownership or control ofcustodial property, or on a tort committed during the custodianship may beasserted against the custodial property by proceeding against the custodian inthe custodial capacity, whether or not the custodian or the minor is personallyliable therefor.

(b) A custodian is not personally liable:

(i) On a contract properly entered into in the custodialcapacity unless the custodian fails to reveal the custodial capacity and toidentify the custodianship in the contract; or

(ii) For an obligation arising from control of custodialproperty or for a tort committed during the custodianship unless the custodianis personally at fault.

(c) A minor is not personally liable for an obligation arisingfrom ownership of custodial property or for a tort committed during thecustodianship unless the minor is personally at fault.

34-13-131. Renunciation, resignation, death or removal of custodian;designation of successor custodian.

(a) A person nominated under W.S. 34-13-116 or designated underW.S. 34-13-122 as custodian may decline to serve by delivering a valid disclaimerto the person who made the nomination or to the transferor or the transferor'slegal representative. If the event giving rise to a transfer has not occurredand no substitute future custodian able, willing and eligible to serve wasnominated, the person who made the nomination may nominate a substitute futurecustodian; otherwise the transferor or the transferor's legal representativeshall designate a substitute custodian at the time of the transfer, in eithercase from among the persons eligible to serve as custodian for that kind ofproperty under W.S. 34-13-122(a). The custodian so designated has the rights ofa successor custodian.

(b) A custodian at any time may designate a trust company or anadult other than a transferor under W.S. 34-13-117 as successor custodian byexecuting and dating an instrument of designation before a subscribing witnessother than the successor. If the instrument of designation does not contain oris not accompanied by the resignation of the custodian, the designation of thesuccessor does not take effect until the custodian resigns, dies, becomesincapacitated or is removed.

(c) A custodian may resign at any time by delivering writtennotice to the minor if the minor has attained the age of fourteen (14) yearsand to the successor custodian and by transferring the custodial property tothe successor custodian.

(d) If a custodian is ineligible, dies or becomes incapacitatedwithout having effectively designated a successor and the minor has attainedthe age of fourteen (14) years, the minor may designate as successor custodian,in the manner prescribed in subsection (b) of this section, an adult member ofthe minor's family, a conservator of the minor or a trust company. If the minorhas not attained the age of fourteen (14) years or fails to act within sixty(60) days after the ineligibility, death or incapacity, the conservator of theminor becomes successor custodian. If the minor has no conservator or theconservator declines to act, the transferor, the legal representative of thetransferor or of the custodian, an adult member of the minor's family or anyother interested person may petition the court to designate a successorcustodian.

(e) A custodian who disclaims under subsection (a) of thissection or resigns under subsection (c) of this section, or the legalrepresentative of a deceased or incapacitated custodian, as soon as practicableshall put the custodial property and records in the possession and control ofthe successor custodian. The successor custodian may enforce the obligation todeliver custodial property and records and becomes responsible for each item asreceived.

(f) A transferor, the legal representative of a transferor, anadult member of the minor's family, a guardian of the person of the minor, theconservator of the minor or the minor if the minor has attained the age offourteen (14) years may petition the court to remove the custodian for causeand to designate a successor custodian other than a transferor under W.S.34-13-117 or to require the custodian to give appropriate bond.

34-13-132. Accounting by and determination of liability of custodian.

(a) A minor who has attained the age of fourteen (14) years,the minor's guardian of the person or legal representative, an adult member ofthe minor's family, a transferor or a transferor's legal representative maypetition the court:

(i) For an accounting by the custodian or the custodian's legalrepresentative; or

(ii) For a determination of responsibility as between thecustodial property and the custodian personally for claims against thecustodial property unless the responsibility has been adjudicated in an actionreferred to in W.S. 34-13-130 to which the minor or the minor's legalrepresentative was a party.

(b) A successor custodian may petition the court for anaccounting by the predecessor custodian.

(c) The court, in a proceeding under this act or in any otherproceeding, may require or permit the custodian or the custodian's legalrepresentative to account.

(d) If a custodian is removed under W.S. 34-13-131(f), thecourt shall require an accounting and order delivery of the custodial propertyand records to the successor custodian and the execution of all instrumentsrequired for transfer of the custodial property.

34-13-133. Termination of custodianship.

(a) The custodian shall transfer in an appropriate manner thecustodial property to the minor or to the minor's estate upon the earlier of:

(i) The minor's attainment of twenty-one (21) years of age withrespect to custodial property transferred under W.S. 34-13-117 or 34-13-118;

(ii) The minor's attainment of majority under the laws of thisstate other than this act with respect to custodial property transferred underW.S. 34-13-119 or 34-13-120;

(iii) The minor's death.

34-13-134. Applicability of provisions.

(a) This act applies to a transfer within the scope of W.S.34-13-115 made after its effective date if:

(i) The transfer purports to have been made under the UniformGifts to Minors Act of Wyoming; or

(ii) The instrument by which the transfer purports to have beenmade uses in substance the designation "as custodian under the UniformGifts to Minors Act" or "as custodian under the Uniform Transfers toMinors Act" of any other state, and the application of this act isnecessary to validate the transfer.

34-13-135. Effect on existing custodianships.

(a) Any transfer of custodial property as now defined in thisact purporting to have been made before the effective date of this act isvalidated notwithstanding that there was no specific authority in the UniformGifts to Minors Act of Wyoming for the coverage of custodial property of thatkind or for a transfer from that source at the time the transfer was made.

(b) The provisions of this act apply to all transfers made in amanner and form prescribed in the Uniform Gifts to Minors Act of Wyoming exceptinsofar as the application impairs constitutionally vested rights or extendsthe duration of custodianships in existence on the effective date of this act.

34-13-136. Uniform construction of provisions.

Thisact shall be applied and construed to effectuate its general purpose to makeuniform the law with respect to the subject of this act among states enactingit.

34-13-137. Short title.

Thisact may be cited as the "Wyoming Uniform Transfers to Minors Act".