Title 554, REAL AND PERSONAL PROPERTY

Sec. 6. (1) This act applies to a transfer that refers to this act in the designation by which the transfer is made as provided in section 13 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 loca…

Sec. 7. (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 future event by naming the custodian follo…

Sec. 8. 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 13.

Sec. 9. (1) A personal representative or trustee may make an irrevocable transfer pursuant to section 13 to a custodian for the benefit of a minor as authorized in the governing will or trust. If the testator or grantor has nominated a custodian under section 7 to receive the cus…

Sec. 10. (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 under section 13 in the absence of a will or under a will or trust that does not contain an auth…

Sec. 11. (1) Subject to subsections (2) and (3), a person not subject to section 9 or 10 who holds property of, or owes a liquidated debt to, a minor who does not have a conservator may make an irrevocable transfer to a custodian for the benefit of the minor under section 13. (2)…

Sec. 12. A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian pursuant to this act.

Sec. 13. (1) Custodial property is created and a transfer is made whenever an action described in subsections (2) to (8) is taken. (2) A certificated or uncertificated security in registered form is either of the following: (a) Registered in the name of the transferor, an adult o…

Sec. 14. An instrument in substantially the following form satisfies the requirements of section 13(2)(b) and 13(8): "TRANSFER UNDER THE MICHIGAN UNIFORM TRANSFERS TO MINORS ACT I, ____________________ (name of transferor or name and representative capacity, if a fiduciary) trans…

Sec. 15. (1) A transferor shall place the custodian in control of the custodial property as soon as practicable. (2) A transfer shall be made only for 1 minor, and only 1 person shall be the custodian. Custodial property held under this act by the same custodian for the benefit o…

Sec. 16. (1) The validity of a transfer made in a manner prescribed in this act is not affected by any of the following: (a) Failure of the transferor to comply with section 15 concerning control. (b) Designation of an ineligible custodian, except the transfer is invalidated by d…

Sec. 17. (1) A custodian shall do all of the following: (a) Take control of custodial property. (b) Register or record title to custodial property if appropriate. (c) Collect, hold, manage, invest, and reinvest custodial property. (2) In dealing with custodial property, a custodi…

Sec. 18. A custodian, acting in a custodial capacity, has the rights, powers, and authority over custodial property that an unmarried adult owner has over his or her own property, but a custodian may exercise those rights, powers, and authority in that capacity only. This section…

Sec. 19. (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, without regard to the duty or ability of the custodian perso…

Sec. 20. (1) A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties. Except for a person who is a transferor under section 8, a custodian has a noncumulative election during each calendar year…

Sec. 21. 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 an…

Sec. 22. (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 proceedin…

Sec. 23. (1) A person nominated under section 7 or designated pursuant to section 13 as custodian may decline to serve by delivering a written declination to the person who made the nomination or to the transferor or the transferor's legal representative. The declination shall de…

Sec. 24. (1) A custodian may resign at any time by delivering written notice to the minor if the minor has attained the age of 14 years and to the successor custodian and by delivering the custodial property to the successor custodian. (2) If a custodian is ineligible, dies, or b…

Sec. 25. (1) A minor who is not less than 14 years of age, the minor's legal representative, an adult member of the minor's family, a transferor, or a transferor's legal representative may petition the court for either of the following: (a) An accounting by the custodian or the c…

Sec. 26. Except as provided in section 27, the custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of the following: (a) The minor becoming 18 years of age with respect to custodial property transferred u…

Sec. 27. (1) Transfer of custodial property to the minor that is transferred to the custodian under section 8 or 9 may be delayed as provided in this section until a specified time after the minor is 18 years of age. The time of transfer to the minor shall be specified in the tra…

Sec. 28. This act applies to a transfer described in section 6 made after the effective date of this act if either of the following is true: (a) The transfer purports to have been made under former 1959 PA 172. (b) The instrument by which the transfer purports to have been made u…

Sec. 29. (1) Transfer of custodial property made before the effective date of this act is validated notwithstanding that there was no specific authority in former 1959 PA 172 for the coverage of custodial property of that kind or for a transfer from that source at the time the tr…

Sec. 30. This act shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this act among states enacting it.

Sec. 31. To the extent that this act by virtue of section 29(2) does not apply to a transfer made in a manner prescribed in former 1959 PA 172, or to the powers, duties, and immunities conferred by a transfer in that manner upon a custodian or a person dealing with a custodian, t…

Sec. 32. The Michigan uniform gifts to minors act, 1959 PA 172, MCL 554.451 to 554.461, is repealed.