How a Custodian Nomination Works
Planning ahead for a minor's inheritance means more than just naming them in a document. Someone needs to manage that property until the minor reaches adulthood. This statute gives you a straightforward way to name that person in advance.
A person having the right to designate the recipient of property transferable on the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary on the occurrence of the event by naming the custodian followed in substance by the words, "as custodian for (name of minor) under the Arizona uniform transfers to minors act."
A.R.S. § 14-7653(A)The nomination can appear in several types of documents: a will, a trust, a deed, an instrument exercising a power of appointment, or a beneficiary designation filed with a financial institution. You can also name substitute custodians who step in if the first choice is unavailable.
When the Nomination Takes Effect
Naming a custodian does not immediately create custodial property. The nomination is revocable until the underlying document becomes irrevocable or the transfer is completed under Section 14-7659.
The nomination of a custodian pursuant to this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed pursuant to section 14-7659.
A.R.S. § 14-7653(C)This means you retain full control while you are alive and the document is still changeable. Once it becomes irrevocable, typically at death in the case of a will, the custodian named in the document steps in and the transfer follows the procedures outlined in the UTMA. For families with minor children or grandchildren, this is a practical way to ensure assets are managed by someone you trust rather than leaving it to court appointment.
