(1) Upon termination of a custodial trust, the custodial trustee shall transfer the unexpended custodial trust property:
(a)  To the beneficiary, if not incapacitated or deceased;
(b)  To the conservator or other recipient designated by the court for an incapacitated beneficiary; or
(c)  Upon the beneficiary’s death, in the following order:
(i)  As last directed in a writing signed by the deceased beneficiary while not incapacitated and received by the custodial trustee during the life of the deceased beneficiary;
(ii)  To the survivor of multiple beneficiaries if survivorship is provided for pursuant to section 68-1306, Idaho Code;
(iii)  As designated in the instrument creating the custodial trust; or
(iv)  To the estate of the deceased beneficiary.
(2)  If, when the custodial trust would otherwise terminate, the distributee is incapacitated, the custodial trust continues for the use and benefit of the distributee as beneficiary until the incapacity is removed or the custodial trust is otherwise terminated.
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Terms Used In Idaho Code 68-1317

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Beneficiary: means an individual for whom property has been transferred to or held under a declaration of trust by a custodial trustee for the individual’s use and benefit under this chapter. See Idaho Code 68-1301
  • Conservator: means a person appointed or qualified by a court to manage the estate of an individual or a person legally authorized to perform substantially the same functions. See Idaho Code 68-1301
  • Court: means the district court of this state. See Idaho Code 68-1301
  • Custodial trust property: means an interest in property transferred to or held under a declaration of trust by a custodial trustee under this chapter and the income from and proceeds of that interest. See Idaho Code 68-1301
  • Custodial trustee: means a person designated as trustee of a custodial trust under this chapter or a substitute or successor to the person designated. See Idaho Code 68-1301
  • Incapacitated: means lacking the ability to manage property and business affairs effectively by reason of mental illness, mental disability, physical illness or disability, chronic use of drugs, chronic intoxication, confinement, detention by a foreign power, disappearance, minority, or other disabling cause. See Idaho Code 68-1301
  • Trustee: A person or institution holding and administering property in trust.
(3)  Death of the beneficiary does not terminate the power of the custodial trustee to discharge obligations of the custodial trustee or beneficiary incurred before the termination of the custodial trust.