# Title 47 — Property

## Chapter 47-24.1 — Uniform Transfers to Minors Act

### § 47-24.1-01. Definitions.

In this chapter:
1. "Adult" means an individual who has attained the age of twenty-one years.
2. "Benefit plan" means an employer's plan for the benefit of an employee or partner.
3. "Broker" means a person lawfully engaged in the business of effecting transactions in
securities or commodities for the person's own account or for the account of others.
4. "Conservator" means a person appointed or qualified by a court to act as general,
limited, or temporary guardian of a minor's property or a person legally authorized to
perform substantially the same functions.
5. "Court" means the district court.
6. "Custodial property" means:
a. Any interest in property transferred to a custodian under this chapter; and
b. The income from and proceeds of that interest in property.
7. "Custodian" means a person so designated under section 47-24.1-09 or a successor
or substitute custodian designated under section 47-24.1-18.
8. "Financial institution" means a bank, trust company, savings institution, or credit union,
chartered and supervised under state or federal law.
9. "Legal representative" means an individual's personal representative or conservator.
10. "Member of the minor's family" means the minor's parent, stepparent, spouse,
grandparent, brother, sister, uncle, or aunt, whether of the whole or half blood or by
adoption.
11. "Minor" means an individual who has not attained the age of twenty-one years.
12. "Personal representative" means an executor, administrator, successor personal
representative, or special administrator of a decedent's estate or a person legally
authorized to perform substantially the same functions.
13. "State" includes the Commonwealth of Puerto Rico.
14. "Transfer" means a transaction that creates custodial property under section
47-24.1-09.
15. "Transferor" means a person who makes a transfer under this chapter.
16. "Trust company" means a financial institution, corporation, limited liability company, or
other legal entity, authorized to exercise general trust powers.
### § 47-24.1-02. Scope and jurisdiction.

1. This chapter applies to a transfer that refers to this chapter in the designation under
subsection 1 of section 47-24.1-09 by which the transfer is made if at the time of the
transfer, the transferor, the minor, or the custodian is a resident of this state or the
custodial property is located in this state. The custodianship so created remains
subject to this chapter despite a subsequent change in residence of a transferor, the
minor, or the custodian, or the removal of custodial property from this state.
2. A person designated as custodian under this chapter is subject to personal jurisdiction
in this state with respect to any matter relating to the custodianship.
3. A transfer that purports to be made and which is valid under the Uniform Transfers to
Minors Act, the Uniform Gifts to Minors Act, or a substantially similar Act, of another
state is governed by the law of the designated state and may be executed and is
enforceable in this state if at the time of the transfer, the transferor, the minor, or the
custodian is a resident of the designated state or the custodial property is located in
the designated state.
### § 47-24.1-03. Nomination of custodian.

1. 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 North Dakota Uniform Transfers to Minors Act". 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.
2. A custodian nominated under this section must be a person to whom a transfer of
property of that kind may be made under subsection 1 of section 47-24.1-09.
3. 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 section 47-24.1-09. 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 section 47-24.1-09.
### § 47-24.1-04. Transfer by gift or exercise of power of appointment.

A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power
of appointment in favor of, a custodian for the benefit of a minor pursuant to section 47-24.1-09.
### § 47-24.1-05. Transfer authorized by will or trust.

1. A personal representative or trustee may make an irrevocable transfer pursuant to
section 47-24.1-09 to a custodian for the benefit of a minor as authorized in the
governing will or trust.
2. If the testator or settlor has nominated a custodian under section 47-24.1-03 to receive
the custodial property, the transfer must be made to that person.
3. If the testator or settlor has not nominated a custodian under section 47-24.1-03, or all
persons so nominated as custodian die before the transfer or are unable, decline, or
are ineligible to serve, the personal representative or the trustee, as the case may be,
shall designate the custodian from among those eligible to serve as custodian for
property of that kind under subsection 1 of section 47-24.1-09.
### § 47-24.1-06. Other transfer by fiduciary.

1. Subject to subsection 3, a personal representative or trustee may make an irrevocable
transfer to another adult or trust company as custodian for the benefit of a minor
pursuant to section 47-24.1-09, in the absence of a will or under a will or trust that
does not contain an authorization to do so.
2. Subject to subsection 3, a conservator may make an irrevocable transfer to another
adult or trust company as custodian for the benefit of the minor pursuant to section
47-24.1-09.
3. A transfer under subsection 1 or 2 may be made only if:
a. The personal representative, trustee, or conservator considers the transfer to be
in the best interest of the minor;
b. The transfer is not prohibited by or inconsistent with provisions of the applicable
will, trust agreement, or other governing instrument; and
c. The transfer is authorized by the court if it exceeds ten thousand dollars in value.
### § 47-24.1-07. Transfer by obligor.

1. Subject to subsections 2 and 3, a person not subject to section 47-24.1-05 or
conservator may make an irrevocable transfer to a custodian for the benefit of the
minor pursuant to section 47-24.1-09.

2. If a person having the right to do so under section 47-24.1-03 has nominated a
custodian under that section to receive the custodial property, the transfer must be
made to that person.
3. If no custodian has been nominated under section 47-24.1-03, or all persons so
nominated as custodian die before the transfer or are unable, decline, or are ineligible
to serve, a transfer under this section may be made to an adult member of the minor's
family or to a trust company unless the property exceeds ten thousand dollars in value.
### § 47-24.1-08. Receipt for custodial property.

A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and
discharge for custodial property transferred to the custodian pursuant to this chapter.
### § 47-24.1-09. Manner of creating custodial property and effecting transfer - Designation

of initial custodian - Control.
1. Custodial property is created and a transfer is made whenever:
a. An uncertificated security or a certificated security in registered form is either:
(1) 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 North Dakota Uniform Transfers to
Minors Act"; or
(2) Delivered if in certificated form, or any document necessary for the transfer
of an uncertificated security is delivered, together with any necessary
endorsement to an adult other than the transferor or to a trust company as
custodian, accompanied by an instrument in substantially the form set forth
in subsection 2;
b. Money is paid or delivered, or a security held in the name of a broker, financial
institution, or its nominee is transferred, 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 North Dakota Uniform Transfers to
Minors Act";
c. The ownership of a life or endowment insurance policy or annuity contract is
either:
(1) 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 North Dakota Uniform
Transfers to Minors Act"; or
(2) Assigned in a writing delivered to an adult other than the transferor, or to a
trust company, whose name in the assignment is followed in substance by
the words: "as custodian for __________ (name of minor) under the North
Dakota Uniform Transfers to Minors Act";
d. An irrevocable exercise of a power of appointment or an irrevocable present right
to future payment under a contract 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 North Dakota Uniform Transfers to Minors Act";
e. An interest in real property is recorded 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 North Dakota Uniform
Transfers to Minors Act";
f. 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:
(1) 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 North Dakota Uniform Transfers to
Minors Act"; or
(2) Delivered to an adult other than the transferor, or to a trust company,
endorsed to that person followed in substance by the words: "as custodian
for __________ (name of minor) under the North Dakota Uniform Transfers
to Minors Act"; or
g. An interest in any property not described in subdivisions a through f is transferred
to an adult other than the transferor, or to a trust company, by a written instrument
in substantially the form set forth in subsection 2.
2. An instrument in the following form satisfies the requirements of paragraph 2 of
subdivision a and subdivision g of subsection 1:
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 North Dakota Uniform Transfers to Minors Act,
the following: (insert a description of the custodian 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 North Dakota Uniform Transfers to
Minors Act.
Dated: _________________________
________________________________
(Signature of Custodian)"
3. A transferor shall place the custodian in control of the custodial property as soon as
practicable.
### § 47-24.1-10. Single custodianship.

A transfer may be made only for one minor and up to two persons may be joint custodians.
All custodial property held under this chapter by the same custodian or joint custodians for the
benefit of the same minor constitutes a single custodianship. Unless otherwise specified in a
document creating the custodial property, each joint custodian may act alone with respect to the
custodial property. If either joint custodian resigns, dies, becomes incapacitated, or is removed,
then the remaining joint custodian becomes sole custodian.
### § 47-24.1-11. Validity and effect of transfer.

1. The validity of a transfer made in a manner prescribed in this chapter is not affected
by:
a. Failure of the transferor to comply with subsection 3 of section 47-24.1-09
concerning possession and control;
b. Designation of an ineligible custodian, except designation of the transferor in the
case of property for which the transferor is ineligible to serve as custodian under
subsection 1 of section 47-24.1-09; or
c. Death or incapacity of a person nominated under section 47-24.1-03 or
designated under section 47-24.1-09 as custodian or the disclaimer of the office
by that person.
2. A transfer made pursuant to section 47-24.1-09 is irrevocable, and the custodial
property is indefeasibly vested in the minor, but the custodian has all the rights,
powers, duties, and authority provided in this chapter, and neither the minor nor the
minor's legal representative has any right, power, duty, or authority with respect to the
custodial property except as provided in this chapter.
3. By making a transfer, the transferor incorporates in the disposition all the provisions of
this chapter, and grants to the custodian, and to any third person dealing with a person

designated as custodian, the respective powers, rights, and immunities provided in this
chapter.
### § 47-24.1-12. Care of custodial property.

1. A custodian shall:
a. Take control of custodial property;
b. Register or record title to custodial property if appropriate; and
c. Collect, hold, manage, invest, and reinvest custodial property.
2. In dealing with custodial property, a custodian shall observe the standard of care that
would be observed by a prudent person dealing with property of another and is not
limited by any other statute restricting investments by fiduciaries. If a custodian has a
special skill or expertise or is named custodian on the basis of representations of a
special skill or expertise, the custodian shall use that skill or expertise. However, a
custodian, in the custodian's discretion and without liability to the minor or the minor's
estate, may retain any custodial property received from a transferor.
3. A custodian may invest in or pay premiums on life insurance or endowment policies
on:
a. The life of the minor only if the minor or the minor's estate is the sole beneficiary;
or
b. The life of another person in whom the minor has an insurable interest only to the
extent that the minor, the minor's estate, or the custodian in the capacity of
custodian, is the irrevocable beneficiary.
4. A custodian at all times shall keep custodial property separate and distinct from all
other property in a manner sufficient to identify it clearly as custodial property of the
minor. Custodial property consisting of an undivided interest is so identified if the
minor's interest is held as a tenant in common and is fixed. Custodial property subject
to recordation is so identified if it is recorded, and custodial property subject to
registration is so identified if it is either registered, or held in an account designated, in
the name of the custodian, followed in substance by the words: "as custodian for
__________ (name of minor) under the North Dakota Uniform Transfers to Minors
Act".
5. A custodian shall keep records of all transactions with respect to custodial property,
including information necessary for the preparation of the minor's tax returns, and shall
make them available for inspection at reasonable intervals by a parent or legal
representative of the minor or by the minor if the minor has attained the age of
fourteen years.
### § 47-24.1-13. Powers of custodian.

1. A custodian, acting in a custodial capacity, has all the rights, powers, and authority
over custodial property that unmarried adult owners have over their own property, but
a custodian may exercise those rights, powers, and authority in that capacity only.
2. This section does not relieve a custodian from liability for breach of section 47-24.1-12.
### § 47-24.1-14. Use of custodial property.

1. A custodian may deliver or pay to the minor or expend for the minor's benefit so much
of the custodial property as the custodian considers advisable for the use and benefit
of the minor, without court order and without regard to:
a. The duty or ability of the custodian personally or of any other person to support
the minor; or
b. Any other income or property of the minor which may be applicable or available
for that purpose.
2. On petition of an interested person or the minor if the minor has attained the age of
fourteen years, the court may order the custodian to deliver or pay to the minor or
expend for the minor's benefit so much of the custodial property as the court considers
advisable for the use and benefit of the minor.

3. A delivery, payment, or expenditure under this section is in addition to, not in
substitution for, and does not affect any obligation of a person to support the minor.
### § 47-24.1-15. Custodian's expense, compensation, and bond.

1. A custodian is entitled to reimbursement from custodial property for reasonable
expenses incurred in the performance of the custodian's duties.
2. Except for one who is a transferor under section 47-24.1-12, a custodian has a
noncumulative election during each calendar year to charge reasonable compensation
for services performed during that year.
3. Except as provided in subsection 6 of section 47-24.1-18, a custodian need not give a
bond.
### § 47-24.1-16. Exemption of third person from liability.

A third person in good faith and without court order may act on the instructions of or
otherwise deal with any person purporting to make a transfer or purporting to act in the capacity
of a custodian and, in the absence of knowledge, is not responsible for determining:
1. The validity of the purported custodian's designation;
2. The propriety of, or the authority under this chapter for, any act of the purported
custodian;
3. The validity or propriety under this chapter of any instrument or instructions executed
or given either by the person purporting to make a transfer or by the purported
custodian; or
4. The propriety of the application of any property of the minor delivered to the purported
custodian.
### § 47-24.1-17. Liability to third persons.

1. A claim based on a contract entered into by a custodian acting in a custodial capacity,
an obligation arising from the ownership or control of custodial property, or a tort
committed during the custodianship may be asserted against the custodial property by
proceeding against the custodian in the custodial capacity, whether or not the
custodian or the minor is personally liable therefor.
2. A custodian is not personally liable:
a. On a contract properly entered into in the custodial capacity unless the custodian
fails to reveal that capacity and to identify the custodianship in the contract; or
b. For an obligation arising from control of custodial property or for a tort committed
during the custodianship unless the custodian is personally at fault.
3. A minor is not personally liable for an obligation arising from ownership of custodial
property or for a tort committed during the custodianship unless the minor is personally
at fault.
### § 47-24.1-18. Renunciation, resignation, death, or removal of custodian - Designation of

successor custodian.
1. A person nominated under section 47-24.1-03 or designated under section 47-24.1-09
as custodian may decline to serve by delivering a valid disclaimer under chapter
30.1-10.1 to the person who made the nomination or to the transferor or the
transferor's legal representative. If the event giving rise to a transfer has not occurred
and no substitute custodian able, willing, and eligible to serve was nominated under
section 47-24.1-03, the person who made the nomination may nominate a substitute
custodian under section 47-24.1-03; otherwise the transferor or the transferor's legal
representative shall designate a substitute custodian at the time of the transfer, in
either case from among the persons eligible to serve as custodian for that kind of
property under subsection 1 of section 47-24.1-09. The custodian so designated has
the rights of a successor custodian.
2. A custodian at any time may designate a trust company or an adult other than a
transferor under section 47-24.1-04 as successor custodian by executing and dating

an instrument of designation before a subscribing witness other than the successor. If
the instrument of designation does not contain or is not accompanied by the
resignation of the custodian, the designation of the successor does not take effect until
the custodian resigns, dies, becomes incapacitated, or is removed.
3. A custodian may resign at any time by delivering written notice to the minor if the minor
has attained the age of fourteen years and to the successor custodian and by
delivering the custodial property to the successor custodian.
4. If a custodian is ineligible, dies, or becomes incapacitated without having effectively
designated a successor and the minor has attained the age of fourteen years, the
minor may designate as successor custodian, in the manner prescribed in subsection
2, an adult member of the minor's family, a conservator of the minor, or a trust
company. If the minor has not attained the age of fourteen years or fails to act within
sixty days after the ineligibility, death, or incapacity, the conservator of the minor
becomes successor custodian. If the minor has no conservator or the conservator
declines to act, the transferor, the legal representative of the transferor or of the
custodian, an adult member of the minor's family, or any other interested person may
petition the court to designate a successor custodian.
5. A custodian who declines to serve under subsection 1 or resigns under subsection 3,
or the legal representative of a deceased or incapacitated custodian, as soon as
practicable, shall put the custodian's property and records in the possession and
control of the successor custodian. The successor custodian by action may enforce
the obligation to deliver custodial property and records and becomes responsible for
each item as received.
6. A transferor, the legal representative of a transferor, an adult member of the minor's
family, a guardian of the person of the minor, the conservator of the minor, or the minor
if the minor has attained the age of fourteen years may petition the court to remove the
custodian for cause and to designate a successor custodian other than a transferor
under section 47-24.1-04 or to require the custodian to give appropriate bond.
### § 47-24.1-19. Accounting by and determination of liability of custodian.

1. A minor who has attained the age of fourteen years, the minor's guardian of the person
or legal representative, an adult member of the minor's family, a transferor, or a
transferor's legal representative may petition the court for an accounting by the
custodian or the custodian's legal representative or for a determination of
responsibility, as between the custodial property and the custodian personally, for
claims against the custodial property unless the responsibility has been adjudicated in
an action under section 47-24.1-17 to which the minor or the minor's legal
representative was a party.
2. A successor custodian may petition the court for an accounting by the predecessor
custodian.
3. The court, in a proceeding under this chapter or in any other proceeding, may require
or permit the custodian or the custodian's legal representative to account.
4. If a custodian is removed under subsection 6 of section 47-24.1-18, the court shall
require an accounting and order delivery of the custodial property and records to the
successor custodian and the execution of all instruments required for transfer of the
custodial property.
### § 47-24.1-20. Termination of custodianship.

The custodian shall transfer in an appropriate manner the custodial property to the minor or
to the minor's estate upon the earlier of:
1. The minor's attainment of twenty-one years of age with respect to custodial property
transferred under section 47-24.1-04 or 47-24.1-05;
2. The minor's attainment of age eighteen with respect to custodial property transferred
under section 47-24.1-06 or 47-24.1-07; or
3. The minor's death.

### § 47-24.1-21. Applicability.

This chapter applies to a transfer within the scope of section 47-24.1-02 made after June
30, 1985, if:
1. The transfer purports to have been made under the North Dakota Uniform Gifts to
Minors Act; or
2. The instrument by which the transfer purports to have been made uses in substance
the designation "as custodian under the Uniform Gifts to Minors Act" or "as custodian
under the Uniform Transfers to Minors Act" of any other state, and the application of
this chapter is necessary to validate the transfer.
### § 47-24.1-22. Effect on existing custodianships.

1. Any transfer of custodial property as now defined in this chapter made before July 1,
1985, is validated notwithstanding that there was no specific authority in the North
Dakota Uniform Gifts to Minors Act for the coverage of custodial property of that kind
or for a transfer from that source at the time the transfer was made.
2. This chapter applies to all transfers made before July 1, 1985, in a manner and form
prescribed in the North Dakota Uniform Gifts to Minors Act, except insofar as the
application impairs constitutionally vested rights or extends the duration of
custodianships in existence on July 1, 1985.
3. Sections 47-24.1-01 and 47-24.1-20 with respect to the age of a minor for whom
custodial property is held under this chapter do not apply to custodial property held in
a custodianship that terminated because of the minor's attainment of the age of
eighteen before July 1, 1985.
