Two Core Forms for Creating a Custodial Trust
This statute gives two standardized forms that satisfy the legal requirements for a custodial trust. The first is a transfer form, used when a person moves property to another individual or trust company as custodial trustee. The second is a declaration of trust form, used when the property owner declares themselves the custodial trustee for a different beneficiary.
If a transaction, including a declaration with respect to or a transfer of specific property, otherwise satisfies applicable law, the criteria of section 14-9102 are satisfied by either: 1. The execution and either delivery to the custodial trustee or recording of an instrument in substantially the following form...
A.R.S. § 14-9118(A)Both forms require identifying the transferor, the custodial trustee, the beneficiary, and the property being placed in trust. The language must reference the Arizona Uniform Custodial Trust Act to invoke its protections and rules.
Ten Accepted Methods for Funding
Beyond the standard forms, the statute recognizes ten practical methods for transferring assets into a custodial trust. These include registering securities in the trustee's name, delivering certificated securities with a signed instrument, directing brokers or financial institutions to credit an account in the trustee's name, and re-titling life insurance policies or annuity contracts.
Real property transfers require executing, delivering, and recording a conveyance. Vehicles and other titled personal property can be transferred through the relevant state agency. The statute also covers written assignments, irrevocable exercises of a power of appointment, and instruments of gift. Each method designates the trustee "as custodial trustee for [beneficiary] under the uniform custodial trust act pursuant to title 14, chapter 9, Arizona Revised Statutes."
