§ 15-1.5-118 — Methods and forms for creating custodial trusts

Colorado § 15-1.5-118

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Colorado Uniform Custodial Trust Act

Text

(1) If a
transaction, including a declaration with respect to or a transfer of specific
property, otherwise satisfies applicable law, the criteria of section 15-1.5-102 are
satisfied by:

(a) The execution and either delivery to the custodial trustee or recording of
an instrument in substantially the following form:

TRANSFER UNDER THE

COLORADO 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 Colorado 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); or

(b) 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

COLORADO UNIFORM CUSTODIAL TRUST ACT

I, ____________ (name of owner of property), declare that henceforth 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 Colorado 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) Customary methods of transferring or evidencing ownership of property
may be used to create a custodial trust, including any of the following:

(a) 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
Colorado Uniform Custodial Trust Act;

(b) 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 paragraph (a)
of subsection (1) of this section;

(c) 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 Colorado
Uniform Custodial Trust Act;

(d) 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
Colorado Uniform Custodial Trust Act;

(e) 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 Colorado
Uniform Custodial Trust Act;

(f) 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 Colorado Uniform Custodial Trust Act;

(g) Delivery of a written notification or assignment of a right to future
payment under a contract to an obligor which 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 Colorado Uniform Custodial Trust Act;

(h) 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 Colorado Uniform
Custodial Trust Act;

(i) Issuance of a certificate of title by an agency of a state or of the United
States which evidences title to tangible personal property:

(I) 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 Colorado
Uniform Custodial Trust Act; or

(II) 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 Colorado Uniform Custodial Trust
Act; or

(j) 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 Colorado Uniform Custodial Trust Act.

Legislative History

Source: L. 99: Entire article added, p. 1222, � 1, effective August 4.