Arizona Laws 14-9118. Methods and forms for creating custodial trusts
A. If a transaction, including a declaration with respect to or a transfer of specific property, otherwise satisfies applicable law, the criteria of section 14-9102 are satisfied by either:
Terms Used In Arizona Laws 14-9118
- Adult: means a person who has attained eighteen years of age. See Arizona Laws 1-215
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- 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 Arizona Laws 14-9101
- Contract: A legal written agreement that becomes binding when signed.
- 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 Arizona Laws 14-9101
- Custodial trustee: means a person who is designated as trustee of a custodial trust under this chapter or a substitute or successor to the person designated. See Arizona Laws 14-9101
- Distributee: means any person who has received property of a decedent from that person's personal representative other than as a creditor or purchaser. See Arizona Laws 14-1201
- Donee: The recipient of a gift.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Person: means an individual or an organization. See Arizona Laws 14-1201
- Property: includes both real and personal property. See Arizona Laws 1-215
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Security: includes any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in an oil, gas or mining title or lease or in payments out of production under that title or lease, collateral trust certificate, transferable share or voting trust certificate and, in general, includes any interest or instrument commonly known as a security, or any certificate of interest or participation, any temporary or interim certificate, receipt or certificate of deposit for, or any warrant or right to subscribe to or purchase, any of these securities. See Arizona Laws 14-1201
- State: means a state, territory or possession of the United States, the District of Columbia or the Commonwealth of Puerto Rico. See Arizona Laws 14-9101
- Transferor: means a person who creates a custodial trust by transfer or declaration. See Arizona Laws 14-9101
- Trust: includes an express trust, private or charitable, with any additions, wherever and however created. See Arizona Laws 14-1201
- Trust company: means a financial institution, corporation or other legal entity that is authorized to exercise general trust powers. See Arizona Laws 14-9101
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional or successor trustee, whether or not appointed or confirmed by the court. See Arizona Laws 14-1201
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. The execution and either delivery to the custodial trustee or recording of an instrument in substantially the following form:
Transfer under the Arizona
Uniform Custodial Trust Act
I, _______________ (name of transferor or name and representative capacity if a fiduciary), transfer to _______________ (name of trustee other than transferor), as custodial trustee for __________________ (name of beneficiary) as beneficiary and ________________ as distributee on termination of the trust in absence of direction by the beneficiary under the Arizona uniform custodial trust act, the following: ______________________________________________________ (insert a description of the custodial trust property legally sufficient to identify and transfer each item of property).
Dated: _______________________
______________________________
(Signature).
2. The execution and the recording or giving notice of its execution to the beneficiary of an instrument in substantially the following form:
Declaration of Trust under the Arizona
Uniform Custodial Trust Act
I, __________________ (name of owner of property), declare that I hold as custodial trustee for ___________________ (name of beneficiary other than transferor) as beneficiary and ______________________ as distributee on termination of the trust in absence of direction by the beneficiary under the Arizona uniform custodial trust act, the following: _______________________________________________________________ (Insert a description of the custodial trust property legally sufficient to identify and transfer each item of property).
Dated: _______________________
______________________________
(Signature)
B. Customary methods of transferring or evidencing ownership of property may be used to create a custodial trust, including any of the following:
1. Registration of a security in the name of a trust company, an adult other than the transferor or the transferor if the beneficiary is other than the transferor, designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
2. Delivery of a certificated security or a document necessary for the transfer of an uncertificated security, together with any necessary endorsement, to an adult other than the transferor or to a trust company as custodial trustee, accompanied by an instrument in substantially the form prescribed in subsection A of this section.
3. Payment of money or transfer of a security held in the name of a broker or a financial institution or its nominee to a broker or financial institution for credit to an account in the name of a trust company, an adult other than the transferor or the transferor if the beneficiary is other than the transferor, designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
4. Registration of ownership of a life or endowment insurance policy or annuity contract with the issuer in the name of a trust company, an adult other than the transferor or the transferor if the beneficiary is other than the transferor, designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
5. Delivery of a written assignment to an adult other than the transferor or to a trust company whose name in the assignment is designated in substance by the words: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
6. Irrevocable exercise of a power of appointment, pursuant to its terms, in favor of a trust company, an adult other than the donee of the power or the donee who holds the power if the beneficiary is other than the donee, whose name in the appointment is designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
7. Delivery of a written notification or assignment of a right to future payment under a contract to an obligor that transfers the right under the contract to a trust company, an adult other than the transferor or the transferor if the beneficiary is other than the transferor, whose name in the notification or assignment is designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
8. Execution, delivery and recordation of a conveyance of an interest in real property in the name of a trust company, an adult other than the transferor or the transferor if the beneficiary is other than the transferor, designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
9. Issuance of a certificate of title by an agency of a state or of the United States that evidences title to tangible personal property that is either:
(a) Issued in the name of a trust company, an adult other than the transferor or the transferor if the beneficiary is other than the transferor, designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
(b) Delivered to a trust company or an adult other than the transferor or endorsed by the transferor to that person, designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".
10. Execution and delivery of an instrument of gift to a trust company or an adult other than the transferor, designated in substance: "as custodial trustee for _______________ (name of beneficiary) under the uniform custodial trust act pursuant to Title 14, Chapter 9, Arizona Revised Statutes".