Title 46, Title 46: PROPERTY

46:38A-2. Definitions As used in this chapter: a. "Adult" means an individual who has attained the age of 21 years; b. "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 o…

46:38A-20. Form of instrument to make certain transfers An instrument in the following form satisfies the requirements of paragraph (2) of subsection a. and subsection g. of R.S. 46:38A-19: "Transfer Under the New Jersey Uniform Transfers to Minors Act I, ........................…

46:38A-21. Control of custodial property A transferor shall place the custodian in control of the custodial property as soon as practical. L. 1987, c. 18, s. 1.

46:38A-22. Single custodianship A transfer may be made only for one minor, and only one person may be the custodian. All custodial property held under this chapter by the same custodian for the benefit of the same minor constitutes a single custodianship. L. 1987, c. 18, s. 1.

46:38A-23. Validity of transfer 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 R.S. 46:38A-22 concerning possession and control; b. Designation of an ineligible custodian, except designation o…

46:38A-24. Transfer deemed irrevocable and vested in minor subject to rights, powers, duties and authority of custodian A transfer made pursuant to R.S. 46:38A-19 is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights,…

46:38A-25. Transfer incorporates all provisions of chapter 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 po…

46:38A-26. Care of custodial property 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. L. 1987, c. 18, s. 1.

46:38A-27. Duty of care owed by custodian 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.…

46:38A-28. Investment or payment of premiums on life insurance or endowment policies by custodian A custodian may invest in or pay premiums on life insurance or endowment policies on the life of the minor only if the minor or the minor's estate is the sole beneficiary, or the lif…

46:38A-29. Custodial property to be kept separate and distinct A custodian shall, at all times, 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…

46:38A-3. Scope of chapter This chapter applies to a transfer referred to in this chapter in a designation under R.S. 46:38A-19 by which the transfer is made if at the time of the transfer, the transferor, the minor, the custodian is a resident of this State or the custodial prop…

46:38A-30. Records to be kept by custodian 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 b…

46:38A-31. Powers of custodian 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 capacit…

46:38A-32. Use of custodial property by custodian for benefit of minor 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 an…

46:38A-33. Application to court for use of custodial property for benefit of minor On application of an interested person or the minor if the minor has attained the age of 14 years, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit…

46:38A-34. Use of custodial property for benefit of minor not to affect obligation to support minor A delivery, payment, or expenditure under R.S. 46:38A-32 or R.S. 46:38A-33 is in addition to, not in substitution for, and does not affect any obligation of a person to support the…

46:38A-35. Custodian's expenses A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties. L. 1987, c. 18, s. 1.

46:38A-36. Custodian's compensation Except for one who is a transferor under R.S. 46:38A-8, a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year. L. 1987, c. 18, s. 1.

46:38A-37. Custodian's bond Except as provided in R.S. 46:38A-47, a custodian need not give a bond. L. 1987, c. 18, s. 1.

46:38A-38. 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 knowl…

46:38A-39. Liability to third persons generally 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…

46:38A-4. Jurisdiction over custodian 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. L. 1987, c. 18, s. 1.

46:38A-40. Liability of custodian to third persons 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 …

46:38A-41. Liability of minor to third persons 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. L. 1987, c. 18, s. 1.

46:38A-42. Custodian declining to serve, designation of successor custodian A person nominated under R.S. 46:38A-6 or designated under R.S. 46:38A-19 as custodian may decline to serve by delivering an instrument in writing to the person who made the nomination or to the transfero…

46:38A-43. Designation of successor custodian by custodian A custodian may, at any time, designate a trust company or an adult other than a transferor under R.S. 46:38A-8 as successor custodian by executing and dating an instrument of designation before a subscribing witness othe…

46:38A-44. Resignation of custodian; notice; delivery of custodial property 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 su…

46:38A-45. Designation successor custodian when custodian is ineligible, dies or becomes incapacitated If a custodian is ineligible, dies or becomes incapacitated without having effectively designated a successor custodian and the minor has attained the age of 14 years, the minor…

46:38A-46. Delivery of custodial property to successor custodian A custodian who declines to serve under R.S. 46:38A-42 or resigns under R.S. 46:38A-44, or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall deliver the custodial prope…

46:38A-47. Removal of custodian; bond A transferor, the legal representative of a transferor, an adult member of the minor's family, a guardian of the estate or person of the minor, or the minor if the minor has attained the age of 14 years may apply to the court to remove the cu…

46:38A-48. Accounting by and determination of liability of custodian A minor who has attained the age of 14 years, the guardian of the estate or person of the minor or legal representative of the minor, an adult member of the minor's family, a transferor, or a transferor's legal …

46:38A-49. Accounting by predecessor custodian A successor custodian may apply to the court for an accounting by the predecessor custodian. L. 1987, c. 18, s. 1.

46:38A-5. Choice of law 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 en…

46:38A-50. Accounting required or permitted by the court 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. L. 1987, c. 18, s. 1.

46:38A-51. Accounting and order for delivery of custodial property upon removal of custodian If a custodian is removed under R.S. 46:38A-47, the court shall require an accounting and order delivery of the custodial property and records to the successor custodian and the execution…

46:38A-52. Termination of custodianship The custodian shall, in an appropriate manner, transfer the custodial property to the minor or to the minor's estate upon the earlier of: a. The minor's attainment of 21 years of age with respect to custodial property transferred under R.S.…

46:38A-53. Applicability of chapter This chapter applies to a transfer within the scope of R.S. 46:38A-3, R.S. 46:38A-4 and R.S. 46:38A-5 made after its effective date if: a. The transfer purports to have been made under the "New Jersey Uniform Gifts to Minors Act," P.L. 1963, c.…

46:38A-54. Validation of certain transfers Any transfer of custodial property as now defined in this chapter made before the effective date of this chapter is validated, notwithstanding that there was no specific authority in the "New Jersey Uniform Gifts to Minors Act," P.L. 196…

46:38A-55. Construction This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it. L. 1987, c. 18, s. 1.

46:38A-56. Reservation of power The Legislature reserves the power to amend, supplement or repeal this chapter. L. 1987, c. 18, s. 1.

46:38A-57. Laws repealed The following are repealed effective July 1, 2007: P.L. 1963, c. 177, ss. 1 through 18 inclusive, 20 through 24 inclusive, 26 through 29 inclusive (C. 46:38-13 to C. 46:38-30 inclusive, C. 46:38-32 to C. 46:38-36 inclusive, C. 46:38-38 to C. 46:38-41 incl…

46:38A-6. Revocable nomination of custodian based upon happening of future event 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 …

46:38A-7. When custodianship becomes effective under revocable nomination of custodian The nomination of a custodian under R.S. 46:38A-6 does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed un…

46:38A-8. Transfer by gift or exercise of power of appointment A person may, pursuant to R.S. 46:38A-19, 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. L. 1987, c. 18, s. 1.

46:38A-9. Transfer authorized by will or trust A personal representative or trustee may, pursuant to R.S. 46:38A-19, make an irrevocable transfer to a custodian for the benefit of a minor as authorized in the governing will or trust. L. 1987, c. 18, s. 1.