Illinois Compiled Statutes 760 ILCS 20/10 – Manner of Creating Custodial Property and Effecting Transfer; …
Current as of: 2024 | Check for updates
|
Other versions
Manner of Creating Custodial Property and Effecting Transfer; Designation of Initial Custodian; Control. (a) Custodial property is created and a transfer is made whenever:
(1) an uncertificated security or a certificated security in registered form is either:
(i) 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 the Illinois Uniform Transfers to Minors Act”; or
(ii) delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to the transferor, an adult other than the transferor or a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection (b);
(2) 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 the Illinois Uniform Transfers to Minors Act”;
(3) the ownership of a life or endowment insurance policy or annuity contract is either:
(i) 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 the Illinois Uniform Transfers to Minors Act”; or
(ii) assigned in a writing delivered to the transferor, an adult other than the transferor or a trust company whose name in the assignment is followed in substance by the words: “as custodian for ………. (name of minor) under the Illinois Uniform Transfers to Minors Act”;
(4) an irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a governing instrument 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 the Illinois Uniform Transfers to Minors Act”;
(5) real estate or an interest therein is the subject of an executed and delivered deed, assignment or similar conveyance into 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 the Illinois Uniform Transfers to Minors Act”. Said document, to be effective, shall also either be recorded by the transferor or the custodian or be executed by the custodian using a statement in substance in the following form:
“…………..(name of custodian) hereby acknowledges receipt of the above property described:………(insert a description of the custodial property sufficient to identify it) as custodian for the minor under the Illinois Transfers to Minors Act.
Dated: ………….
…………………… (Signature of Custodian)”;
(6) 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 either:
(i) 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 the Illinois Uniform Transfers to Minors Act”; or
(ii) delivered to the transferor, an adult other than the transferor or a trust company, endorsed to that person followed in substance by the words: “as custodian for ………. (name of minor) under the Illinois Uniform Transfers to Minors Act”;
(7) the beneficial interest in a land trust is assigned to 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 the Illinois Uniform Transfers to Minors Act”.
The assignment and its acceptance by the custodian must be delivered to the trustee of the land trust and an acknowledgment of receipt obtained; or
(8) an interest in any property not described in paragraphs (1) through (7) is transferred to the transferor, an adult other than the transferor or a trust company by a written instrument in substantially the form set forth in subsection (b).
(b) An instrument in the following form satisfies the requirements of paragraphs (1)(ii) and (8) of subsection (a):
(1) an uncertificated security or a certificated security in registered form is either:
Terms Used In Illinois Compiled Statutes 760 ILCS 20/10
- 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.
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Personal property: All property that is not real property.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
- Trustee: A person or institution holding and administering property in trust.
- United States: may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
(i) 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 the Illinois Uniform Transfers to Minors Act”; or
(ii) delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to the transferor, an adult other than the transferor or a trust company as custodian, accompanied by an instrument in substantially the form set forth in subsection (b);
(2) 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 the Illinois Uniform Transfers to Minors Act”;
(3) the ownership of a life or endowment insurance policy or annuity contract is either:
(i) 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 the Illinois Uniform Transfers to Minors Act”; or
(ii) assigned in a writing delivered to the transferor, an adult other than the transferor or a trust company whose name in the assignment is followed in substance by the words: “as custodian for ………. (name of minor) under the Illinois Uniform Transfers to Minors Act”;
(4) an irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a governing instrument 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 the Illinois Uniform Transfers to Minors Act”;
(5) real estate or an interest therein is the subject of an executed and delivered deed, assignment or similar conveyance into 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 the Illinois Uniform Transfers to Minors Act”. Said document, to be effective, shall also either be recorded by the transferor or the custodian or be executed by the custodian using a statement in substance in the following form:
“…………..(name of custodian) hereby acknowledges receipt of the above property described:………(insert a description of the custodial property sufficient to identify it) as custodian for the minor under the Illinois Transfers to Minors Act.
Dated: ………….
…………………… (Signature of Custodian)”;
(6) 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 either:
(i) 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 the Illinois Uniform Transfers to Minors Act”; or
(ii) delivered to the transferor, an adult other than the transferor or a trust company, endorsed to that person followed in substance by the words: “as custodian for ………. (name of minor) under the Illinois Uniform Transfers to Minors Act”;
(7) the beneficial interest in a land trust is assigned to 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 the Illinois Uniform Transfers to Minors Act”.
The assignment and its acceptance by the custodian must be delivered to the trustee of the land trust and an acknowledgment of receipt obtained; or
(8) an interest in any property not described in paragraphs (1) through (7) is transferred to the transferor, an adult other than the transferor or a trust company by a written instrument in substantially the form set forth in subsection (b).
(b) An instrument in the following form satisfies the requirements of paragraphs (1)(ii) and (8) of subsection (a):
“TRANSFER UNDER THE ILLINOIS
UNIFORM TRANSFERS TO MINORS ACT
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 the Illinois Uniform Transfers to Minors Act, 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 the Illinois Uniform Transfers to Minors Act.
Dated: ……….
……………………….. (Signature of Custodian)”
(c) A transferor shall place the custodian in control of the custodial property as soon as practicable.