designation of successor custodial trustee.
1.Before accepting the custodial trust property, a person designated as custodial trustee
may decline to serve by notifying the person who made the designation, the transferor, or the
transferor’s legal representative. If an event giving rise to a transfer has not occurred, the
substitutecustodialtrusteedesignatedundersection633F.3becomesthecustodialtrustee, or,
ifasubstitutecustodialtrusteehasnotbeendesignated,thepersonwhomadethedesignation
may designate a substitute custodial trustee pursuant to section 633F.3. In other cases, the
transferororthetransferor’slegalrepresentativemaydesignateasubstitutecustodialtrustee.
2.A custodial trustee who has accepted the custodial trust property may resign by doing
all of the following:
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designation of successor custodial trustee.
1. Before accepting the custodial trust property, a person designated as custodial trustee
may decline to serve by notifying the person who made the designation, the transferor, or the
transferor’s legal representative. If an event giving rise to a transfer has not occurred, the
substitutecustodialtrusteedesignatedundersection633F.3becomesthecustodialtrustee, or,
ifasubstitutecustodialtrusteehasnotbeendesignated,thepersonwhomadethedesignation
may designate a substitute custodial trustee pursuant to section 633F.3. In other cases, the
transferororthetransferor’slegalrepresentativemaydesignateasubstitutecustodialtrustee.
2. A custodial trustee who has accepted the custodial trust property may resign by doing
all of the following:
a. Delivering written notice to a successor custodial trustee, if any, the beneficiary and, if
the beneficiary is incapacitated, to the beneficiary’s legal representative, if any.
b. Transferring or registering, or recording an appropriate instrument relating to, the
custodial trust property, in the name of, and delivering the records to, the successor custodial
trustee identified under subsection 3.
3. If a custodial trustee or successor custodial trustee is ineligible, resigns, dies, or
becomes incapacitated, the successor designated under section 633F.2, subsection 7, or
section 633F.3 becomes custodial trustee. If there is no effective provision for a successor, the
beneficiary if not incapacitated, or the legal representative of an incapacitated beneficiary,
maydesignateasuccessorcustodialtrustee. Ifthebeneficiaryisnotincapacitated, butfailsto
act within ninety days after the ineligibility, resignation, death, or incapacity of the custodial
trustee, or if the beneficiary is incapacitated and the beneficiary’s legal representative fails to
act within ninety days after the ineligibility, resignation, death, or incapacity of the custodial
trustee, then the beneficiary’s legal representative becomes successor custodial trustee. If
the beneficiary does not have a legal representative or the legal representative fails to act,
the resigning custodial trustee may designate a successor custodial trustee.
4. If a successor custodial trustee is not designated pursuant to subsection 3, the
transferor, the legal representative of the transferor or of the custodial trustee, a beneficiary’s
legal representative and if none, a member of the beneficiary’s family, a person interested in
the custodial trust property may petition the court to designate a successor custodial trustee.
5. A custodial trustee who declines to serve or resigns, or the legal representative of a
deceased or incapacitated custodial trustee, as soon as practicable, shall put the custodial
trust property and records in the possession and control of the successor custodial trustee.
The successor custodial trustee may enforce the obligation to deliver custodial trust property
and records and becomes responsible for each item as received.
6. A substitute custodial trustee designated under section 633F.3, the beneficiary, the
beneficiary’s legal representative and if none, a member of the beneficiary’s family, a person
interested in the custodial trust property, may petition the court to remove the custodial
trustee for cause and designate a successor custodial trustee, to require the custodial trustee
to furnish a bond or other security for the faithful performance of fiduciary duties, or for
other appropriate relief.