(a)  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 the Rhode Island Uniform Transfers to Minors Act, chapter 7 of Title 18.” 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.

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Terms Used In Rhode Island General Laws 18-7-4

  • 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
  • Custodial property: means :

    (i)  Any interest in property transferred to a custodian under this chapter; and

    (ii)  The income from and proceeds of that interest in property. See Rhode Island General Laws 18-7-2

  • Custodian: means a person designated under § 18-7-10 or a successor or substitute custodian designated under § 18-7-19. See Rhode Island General Laws 18-7-2
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Minor: means an individual who has not attained the age of twenty-one (21) years. See Rhode Island General Laws 18-7-2
  • Person: means an individual, corporation, organization, or other legal entity. See Rhode Island General Laws 18-7-2
  • Transfer: means a transaction that creates custodial property under § 18-7-10. See Rhode Island General Laws 18-7-2

(b)  A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under § 18-7-10(a).

(c)  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 § 18-7-10. Unless the nomination of a custodian has been revoked, upon the occurrence of the future event the custodianship becomes effective and the custodian shall enforce a transfer of the custodial property pursuant to § 18-7-10.

History of Section.
P.L. 1985, ch. 389, § 2.