[Rev. 11/21/2013 9:53:09 AM--2013]

CHAPTER 167 - TRANSFERS TO MINORS (UNIFORM ACT)

NRS 167.010           Short title.

NRS 167.020           Definitions.

NRS 167.021           Applicability; custodian subject to personal jurisdiction.

NRS 167.023           Transfer by gift or exercise of power of appointment.

NRS 167.025           Transfer authorized in will or trust.

NRS 167.027           Transfer not authorized in will or trust; transfer by conservator.

NRS 167.029           Transfer by debtor or person holding property of minor.

NRS 167.030           Creation of custodial property; manner of making transfer.

NRS 167.033           Nomination of custodian to serve upon future event.

NRS 167.034           Delay of time for certain transfers; requirements.

NRS 167.035           Validity of transfer.

NRS 167.040           Effect of transfer.

NRS 167.043           Acknowledgment of delivery of custodial property.

NRS 167.045           Rights of custodian.

NRS 167.050           Duties and powers of custodian.

NRS 167.055           Delivery, payment or expenditure of custodial property for benefit of minor.

NRS 167.060           Expenses, compensation and bond of custodian.

NRS 167.070           Exemption of third persons from liability.

NRS 167.080           Disclaimer, resignation, death or removal of custodian; designation of successor custodian; petition to remove or require bond of custodian.

NRS 167.085           Claims against custodial property; liability of custodian and minor.

NRS 167.090           Petition for accounting by custodian or determination of responsibility by court; delivery of custodial property and records to successor custodian.

NRS 167.095           Transfer by custodian to minor.

NRS 167.100           Construction.

_________

_________

 

      NRS 167.010  Short title.  This chapter may be cited as Nevada’s Uniform Act on Transfers to Minors.

      (Added to NRS by 1957, 21; A 1967, 370; 1985, 69)

      NRS 167.020  Definitions.  In this chapter, unless the context otherwise requires:

      1.  “Adult” means a person who has attained the age of 18 years.

      2.  “Benefit plan” means an employer’s plan for the benefit of an employee or partner.

      3.  “Broker” means a person lawfully engaged in the business of effecting transactions in securities or commodities for his or her own account or for the account of others.

      4.  “Conservator” means a person appointed or qualified by a court to act as general, limited or temporary guardian of a minor’s property or any other person legally authorized to perform substantially the same functions.

      5.  “Court” means the district court.

      6.  “Custodial property” means:

      (a) Any interest in property transferred to a custodian in a manner prescribed in this chapter; and

      (b) The income from and the proceeds of that interest in property.

      7.  “Custodian” means a person so designated in a manner prescribed in this chapter. The term includes a successor or substitute custodian.

      8.  “Financial institution” means a bank, trust company, savings institution or credit union chartered and supervised under federal law or the laws of a state.

      9.  “Legal representative” means a personal representative or conservator.

      10.  “Member of a minor’s family” means a minor’s parent, stepparent, spouse, grandparent, brother, sister, uncle or aunt, whether of the whole blood or the half blood, or by or through legal adoption.

      11.  “Minor” means a person who has not attained the age of 18 years.

      12.  “Person” means any natural person, corporation, organization or other legal entity.

      13.  “Personal representative” means an executor, administrator, successor personal representative or special administrator of a decedent’s estate or any other person legally authorized to perform substantially the same functions.

      14.  “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico or any territory or possession subject to the legislative authority of the United States.

      15.  “Transfer” means a transaction which creates custodial property in a manner prescribed in this chapter.

      16.  “Transferor” means a person who makes a transfer in a manner prescribed in this chapter.

      17.  “Trust company” means a financial institution, corporation or other legal entity authorized to exercise general trust powers.

      (Added to NRS by 1957, 21; A 1965, 1013; 1967, 371; 1977, 1024; 1983, 9; 1985, 69)

      NRS 167.021  Applicability; custodian subject to personal jurisdiction.

      1.  This chapter applies to a transfer that refers to Nevada’s Uniform Act on Transfers to Minors in the designation under subsection 1 of NRS 167.030 by which the transfer is made if at the time of the transfer, the transferor, the minor or the custodian is a resident of this state or the custodial property is located in this state. The custodianship so created remains subject to the provisions of this chapter despite a subsequent change in the residence of the transferor, the minor or the custodian, or the removal of the custodial property from this state.

      2.  A person designated as a custodian under this chapter is subject to personal jurisdiction in this state with respect to any matter relating to the custodianship.

      3.  A transfer that purports to be made and which is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act or a substantially similar act, of another state is governed by the law of the designated state and may be executed and is enforceable in this state if at the time of the transfer, the transferor, the minor or the custodian is a resident of the designated state or the custodial property is located in the designated state.

      (Added to NRS by 1985, 66)

      NRS 167.023  Transfer by gift or exercise of power of appointment.  A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to the provisions of this chapter.

      (Added to NRS by 1985, 67)

      NRS 167.025  Transfer authorized in will or trust.

      1.  A personal representative or trustee may make an irrevocable transfer pursuant to the provisions of this chapter to a custodian for the benefit of a minor as authorized in the governing will or trust.

      2.  If the testator or settlor has nominated a custodian to receive the custodial property, the transfer must be made to that person.

      3.  If the testator or settlor has not nominated a custodian, or all persons so nominated as custodian die before the transfer or are unable, decline or are ineligible to serve, the personal representative or the trustee shall designate the custodian from among those eligible to serve as custodian for property of that kind.

      (Added to NRS by 1985, 67)

      NRS 167.027  Transfer not authorized in will or trust; transfer by conservator.

      1.  A personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to the provisions of this chapter, in the absence of a will or under a will or trust that does not contain an authorization to do so.

      2.  A conservator may make an irrevocable transfer to another adult or trust company as custodian for the benefit of the minor pursuant to the provisions of this chapter.

      3.  A transfer made pursuant to this section may be made only if:

      (a) The personal representative, trustee or conservator considers the transfer to be in the best interest of the minor;

      (b) The transfer is not prohibited by or inconsistent with the provisions of the applicable will, trust agreement or other governing instrument; and

      (c) The transfer is authorized by the court if it exceeds $10,000 in value.

      (Added to NRS by 1985, 67)

      NRS 167.029  Transfer by debtor or person holding property of minor.

      1.  A person not subject to NRS 167.025 or 167.027 who holds property of or owes a liquidated debt to a minor not having a conservator may make an irrevocable transfer to a custodian for the benefit of the minor pursuant to the provisions of this chapter.

      2.  If a person has nominated a custodian under NRS 167.033 to receive the custodial property, the transfer must be made to that person.

      3.  If no custodian has been nominated, or if all persons so nominated die before the transfer or are unable, decline or are ineligible to serve, a transfer under this section may be made to an adult member of the minor’s family or to a trust company, unless the property exceeds $10,000 in value.

      (Added to NRS by 1985, 67)

      NRS 167.030  Creation of custodial property; manner of making transfer.

      1.  Custodial property is created and a transfer is made when:

      (a) An uncertificated security or a certificated security in registered form is:

             (1) Registered in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for................(name of minor) under Nevada’s Uniform Act on Transfers to Minors”; or

             (2) Delivered if in certificated form, or any document necessary for the transfer or an uncertificated security is delivered, with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection 2;

      (b) Money is paid or delivered to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for................ (name of minor) under Nevada’s Uniform Act on Transfers to Minors”;

      (c) The ownership of a life or endowment insurance policy or annuity contract is:

             (1) Registered with the issuer in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for................(name of minor) under Nevada’s Uniform Act on Transfers to Minors”; or

             (2) Assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: “as custodian for ................ (name of minor) under Nevada’s Uniform Act on Transfers to Minors”;

      (d) An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer or other obligor that the right is transferred to the transferor, an adult other than the transferor or a trust company, whose name in the notification is followed in substance by the words: “as custodian for................(name of minor) under Nevada’s Uniform Act on Transfers to Minors”;

      (e) An interest in real property is recorded in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for................ (name of minor) under Nevada’s Uniform Act on Transfers to Minors”;

      (f) A certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is:

             (1) Issued in the name of the transferor, an adult other than the transferor or a trust company, followed in substance by the words: “as custodian for................(name of minor) under Nevada’s Uniform Act on Transfers to Minors”; or

             (2) Delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words: “as custodian for................(name of minor) under Nevada’s Uniform Act on Transfers to Minors”; or

      (g) An interest in any property not described in paragraphs (a) to (f), inclusive, is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in subsection 2.

      2.  An instrument in the following form satisfies the requirements of subparagraph (2) of paragraph (a) of subsection 1 and paragraph (g) of subsection 1:

 

Transfer Under Nevada’s Uniform Act on Transfers to Minors

 

       I, ................(name of transferor or name and representative capacity if a fiduciary) hereby transfer to ................(name of custodian), as custodian for................(name of minor) under Nevada’s Uniform Act on Transfers to Minors, the following: (Insert a description of the custodial property sufficient to identify it).

Dated: .................................

 

..........................................................

                    (Signature)

................(name of custodian) acknowledges receipt of the property described above as custodian for the minor named above under Nevada’s Uniform Act on Transfers to Minors.

Dated: .................................

 

..........................................................

       (Signature of Custodian)

 

      3.  Any transfer made in a manner prescribed in subsection 1 may be made to only one minor and only one person may be the custodian. Any custodial property held by the same custodian for the benefit of the same minor constitutes a single custodianship.

      4.  A transferor shall promptly do all things within his or her power to put the subject of the transfer in the possession and control of the custodian.

      (Added to NRS by 1957, 22; A 1965, 1014; 1967, 372; 1983, 11; 1985, 71)

      NRS 167.033  Nomination of custodian to serve upon future event.

      1.  A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words: “as custodian for ................ (name of minor) under Nevada’s Uniform Act on Transfers to Minors.” The nomination may name one or more persons as substitute custodians to whom the property must be transferred, in the order named, if the first nominated custodian dies before the transfer or is unable, declines or is ineligible to serve. The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment, or in a writing designating a beneficiary of contractual rights which is registered with or delivered to the payor, issuer or other obligor of the contractual rights.

      2.  A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under subsection 1 of NRS 167.030.

      3.  The nomination of a custodian under this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed under the provisions of this chapter. Unless the nomination of a custodian has been revoked, upon the occurrence of the future event, the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to the provisions of this chapter.

      (Added to NRS by 1985, 66)

      NRS 167.034  Delay of time for certain transfers; requirements.

      1.  Subject to the limitations of this section, the time for transfer to the minor of custodial property transferred under NRS 167.023, 167.025 or 167.033 may be delayed until a specified time after the time the minor attains 18 years of age. The time must be specified in the transfer made under NRS 167.030.

      2.  To specify a delayed time for transfer, the words: “as custodian for ......................... (name of minor) until he or she attains the age of ........ (age at which transfer is to occur) years under Nevada’s Uniform Act on Transfers to Minors” must be substituted in substance for the words: “as custodian for ......................... (name of minor) under Nevada’s Uniform Act on Transfers to Minors” in making the transfer under NRS 167.030.

      3.  The time for transfer to the minor of custodial property transferred under NRS 167.025 or 167.033 may be delayed under this section only if the governing will, trust or nomination provides in substance that the custodianship is to continue until the time the minor attains a specified age, which time may not be later than the time the minor attains 25 years of age, and in such a case the will, trust or nomination determines the time to be specified in making the transfer under NRS 167.030.

      4.  The time for transfer to the minor of custodial property transferred under NRS 167.023 may be delayed only if the transfer under NRS 167.030 provides in substance that the custodianship is to continue until the time the minor attains a specified age, which time may not be later than the time the minor:

      (a) Attains 21 years of age, in the case of a transfer by irrevocable gift under NRS 167.023; or

      (b) Attains 25 years of age, in the case of a transfer by irrevocable exercise of a power of appointment under NRS 167.023.

      5.  If a transfer under NRS 167.030 provides in substance that the duration of the custodianship is for a time longer than the maximum time permitted by this section, the custodianship shall be deemed to continue only until the time the minor attains the maximum age permitted by this section for the duration of a custodianship created by that type of transfer.

      6.  The provisions of this section do not apply to any transfer made under NRS 167.027 or 167.029.

      (Added to NRS by 1991, 1705)

      NRS 167.035  Validity of transfer.  The validity of a transfer made in a manner prescribed in this chapter is not affected by:

      1.  The failure of the transferor to comply with the provisions of NRS 167.030 concerning possession and control;

      2.  The designation of an ineligible custodian, except the designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under subsection 1 of NRS 167.030; or

      3.  The death or incapacity of a person nominated or designated as custodian or the disclaimer of the office by that person.

      (Added to NRS by 1985, 68)

      NRS 167.040  Effect of transfer.

      1.  A transfer made in a manner prescribed in this chapter is irrevocable and conveys to the minor indefeasibly vested legal title to the custodial property, but the custodian has any right, power, duty or authority provided in this chapter and neither the minor nor the minor’s legal representative has any right, power, duty or authority with respect to the custodial property except as provided in this chapter.

      2.  By making a transfer in a manner prescribed in this chapter, the transferor incorporates in his or her disposition all the provisions of this chapter and grants to the custodian, and to any third person dealing with a person designated as custodian, the respective powers, rights and immunities provided in this chapter.

      (Added to NRS by 1957, 23; A 1965, 1015; 1967, 373; 1983, 12; 1985, 74)

      NRS 167.043  Acknowledgment of delivery of custodial property.  A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian pursuant to the provisions of this chapter.

      (Added to NRS by 1985, 68)

      NRS 167.045  Rights of custodian.

      1.  A custodian, acting in a custodial capacity, has all the rights, powers and authority over custodial property that an unmarried adult has over his or her own property, but a custodian may exercise those rights, powers and authority in that capacity only.

      2.  This section does not relieve a custodian from liability for breach of any of the provisions of NRS 167.050.

      (Added to NRS by 1985, 68)

      NRS 167.050  Duties and powers of custodian.

      1.  The custodian shall:

      (a) Take control of the custodial property;

      (b) Register or record title to the custodial property, if appropriate; and

      (c) Collect, hold, manage, invest and reinvest the custodial property.

      2.  In dealing with custodial property, the custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another, and is not limited by any other statute restricting investments by fiduciaries. If the custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, he or she shall use that skill or expertise. However, the custodian, without liability to the minor or the minor’s estate, may retain any custodial property received from a transferor.

      3.  The custodian may invest in or pay premiums on life insurance or endowment policies on the life of:

      (a) The minor only if the minor or the minor’s estate is the sole beneficiary; or

      (b) Another person in whom the minor has an insurable interest only to the extent that the minor, the minor’s estate or the custodian, in the capacity of custodian, is the irrevocable beneficiary.

      4.  The custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor. Custodial property consisting of an undivided interest is so identified if the minor’s interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered, or held in an account designated, in the name of the custodian, followed in substance by the words: “as a custodian for................ (name of minor) under Nevada’s Uniform Act on Transfers to Minors.”

      5.  The custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor’s tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor, if the minor has attained the age of 14 years.

      (Added to NRS by 1957, 23; A 1965, 1015; 1967, 373; 1977, 1025; 1983, 12; 1985, 75)

      NRS 167.055  Delivery, payment or expenditure of custodial property for benefit of minor.

      1.  A custodian may deliver or pay to the minor or expend for the minor’s benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to:

      (a) The duty or ability of the custodian personally or of any other person to support the minor; or

      (b) Any other income or property of the minor which may be applicable or available for that purpose.

      2.  On petition of an interested person, or the minor if the minor has attained the age of 14 years, the court may order the custodian to deliver or pay to the minor or expend for the benefit of the minor so much of the custodial property as the court considers advisable for the use and benefit of the minor.

      3.  A delivery, payment or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor.

      (Added to NRS by 1985, 69)

      NRS 167.060  Expenses, compensation and bond of custodian.

      1.  A custodian is entitled to reimbursement from the custodial property for reasonable expenses incurred in the performance of the custodian’s duties.

      2.  Unless a custodian is a transferor under NRS 167.023, the custodian may elect to receive from the custodial property during each calendar year reasonable compensation for the custodian’s services performed during that year.

      3.  Except as otherwise provided in this chapter, a custodian need not give a bond for the performance of his or her duties.

      (Added to NRS by 1957, 24; A 1985, 77)

      NRS 167.070  Exemption of third persons from liability.  A third person acting in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, without knowledge, is not responsible for determining:

      1.  Whether the person designated as custodian or purporting to act as a custodian has been duly designated;

      2.  The propriety of, or the authority under this chapter for, any act of the purported custodian;

      3.  The validity or propriety under this chapter of any instrument or instructions executed or given by a person purporting to make a transfer or by the purported custodian; or

      4.  The propriety of the application of any property of the minor delivered to the purported custodian.

      (Added to NRS by 1957, 24; A 1965, 1017; 1967, 375; 1985, 77)

      NRS 167.080  Disclaimer, resignation, death or removal of custodian; designation of successor custodian; petition to remove or require bond of custodian.

      1.  A person nominated or designated as a custodian may decline to serve by delivering a valid disclaimer to the person who made the nomination or to the transferor or the transferor’s legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian able, willing and eligible to serve was nominated, the person who made the nomination may nominate a substitute custodian; otherwise the transferor or the transferor’s legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property. The custodian so designated has the rights of a successor custodian.

      2.  A custodian at any time may designate a trust company or an adult other than a transferor as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor. If the instrument of designation does not contain or is not accompanied by the resignation of the custodian, the designation of the successor does not take effect until the custodian resigns, dies, becomes incapacitated or is removed.

      3.  A custodian may resign at any time by delivering written notice to the minor, if the minor has attained the age of 14 years, and to the successor custodian and by delivering the custodial property to the successor custodian.

      4.  If a custodian is ineligible, dies or becomes incapacitated without having effectively designated a successor and the minor has attained the age of 14 years, the minor may designate as successor custodian, in the manner prescribed in subsection 2, an adult member of the minor’s family, a conservator of the minor or a trust company. If the minor has not attained the age of 14 years or fails to act within 60 days after the ineligibility, death or incapacity, the conservator of the minor becomes successor custodian. If the minor has no conservator or the conservator declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor’s family, or any other interested person may petition the court to designate a successor custodian.

      5.  A custodian who declines to serve under subsection 1 or resigns under subsection 3, or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall put the custodial property and records in the possession and control of the successor custodian. The successor custodian by action may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received.

      6.  A transferor, the legal representative of a transferor, an adult member of the minor’s family, a guardian of the minor, the conservator of the minor, or the minor if he or she has attained the age of 14 years may petition the court that, for cause shown in the petition, the custodian be removed and a successor custodian be designated, other than a transferor, or, in the alternative, that the custodian be required to give bond for the performance of his or her duties.

      (Added to NRS by 1957, 25; A 1967, 375; 1977, 1027; 1983, 14; 1985, 78)

      NRS 167.085  Claims against custodial property; liability of custodian and minor.

      1.  A claim based on:

      (a) A contract entered into by a custodian acting in a custodial capacity;

      (b) An obligation arising from the ownership or control of custodial property; or

      (c) A tort committed during the custodianship,

Ê may be asserted against the custodial property by proceeding against the custodian in his or her custodial capacity, whether or not the custodian or the minor is personally liable therefor.

      2.  A custodian is not personally liable:

      (a) On a contract properly entered into in his or her custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or

      (b) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.

      3.  A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault.

      (Added to NRS by 1985, 68)

      NRS 167.090  Petition for accounting by custodian or determination of responsibility by court; delivery of custodial property and records to successor custodian.

      1.  The minor, if he or she has attained the age of 14 years, or the guardian or legal representative of the minor, an adult member of the minor’s family, or a transferor or the legal representative of the transferor may petition the court for:

      (a) An accounting by the custodian or the legal representative of the custodian; or

      (b) A determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property, unless the responsibility has been adjudicated in an action pursuant to NRS 167.085 to which the minor or the legal representative of the minor was a party.

      2.  A successor custodian may petition the court for an accounting by the predecessor custodian.

      3.  The court, in a proceeding under this chapter or otherwise, may require or permit the custodian or the legal representative of the custodian to account and, if the custodian is removed, shall so require and order delivery of all custodial property and records to the successor custodian and the execution of all instruments required for the transfer of the custodial property.

      (Added to NRS by 1957, 25; A 1985, 80)

      NRS 167.095  Transfer by custodian to minor.  The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor’s estate upon the earlier of:

      1.  The minor’s attainment of 18 years of age with respect to custodial property transferred under NRS 167.023, 167.025, 167.027 or 167.029, or the age provided for under NRS 167.034, whichever is later; or

      2.  The minor’s death.

      (Added to NRS by 1985, 68; A 1991, 1706)

      NRS 167.100  Construction.  This chapter must be so applied and construed as to effectuate its general purpose to make uniform the law of those states which enact it.

      (Added to NRS by 1957, 26; A 1985, 81)