Who This Statute Applies To
This section addresses a specific situation: someone holds property that belongs to a minor, or owes the minor money, but there is no conservator in place and no will or trust directing the transfer. Think of an insurance company that owes a payout to a minor, or a relative holding funds that belong to a child. This statute gives that person a clear path to get the property into proper custodial management.
A person who is not subject to section 14-7655 or 14-7656 and 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 pursuant to section 14-7659.
A.R.S. § 14-7657(A)If someone previously nominated a custodian under Section 14-7653 to receive property for that minor, the transfer must go to the nominated custodian. The obligor does not get to choose someone else when a valid nomination is already in place.
Limits on Transfers Without a Nominated Custodian
When no custodian has been nominated, or the nominated custodian is unavailable, the statute narrows who can receive the transfer and how much can be transferred without additional process.
If no custodian has been nominated pursuant to section 14-7653 or all persons so nominated as custodian die before the transfer or are unable, decline or are ineligible to serve, a transfer pursuant to 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.
A.R.S. § 14-7657(C)The ten-thousand-dollar cap mirrors the protection found in Section 14-7656. For amounts above that threshold, a different mechanism is needed. This keeps larger sums from being placed into custodial accounts without proper oversight, while allowing smaller transfers to move forward efficiently.
