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A.R.S. § 14-9118

Methods and Forms for Custodial Trusts

Verified April 4, 202657th Legislature, 1st Regular Session

This statute provides specific forms and steps for creating a custodial trust. It lists two standard forms: a transfer form and a declaration of trust form. It also describes ten accepted methods for moving different types of property into a custodial trust.

Title 14, UNIFORM CUSTODIAL TRUST ACT

azleg.gov

Two Core Forms for Creating a Custodial Trust

This statute gives two standard forms that meet the legal needs for a custodial trust. The first is a transfer form. You use it when moving property to another person or trust company as trustee.

The second is a declaration of trust form. You use it when the property owner names themselves as 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 must name the transferor, the trustee, the beneficiary, and the property. The language must reference the Uniform Custodial Trust Act.

Ten Accepted Methods for Funding

Beyond the standard forms, the statute lists ten ways to move assets into a custodial trust. For example, you can register securities in the trustee's name. You can also deliver signed certificates.

You can direct brokers or banks to credit an account in the trustee's name. Life insurance policies and annuity contracts can also be re-titled.

Real property transfers require a recorded deed. You can transfer vehicles and titled personal property through the relevant state agency. The statute also covers written assignments, powers of appointment, and gifts.

14-9118. Methods and forms for creating custodial trusts A. 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: [Transfer under the Arizona Uniform Custodial Trust Act form] 2. The execution and the recording or giving notice of its execution to the beneficiary of an instrument in substantially the following form: [Declaration of Trust under the Arizona Uniform Custodial Trust Act form] B. Customary methods of transferring or evidencing ownership of property may be used to create a custodial trust, including: 1. Registration of a security. 2. Delivery of a certificated security. 3. Payment of money or transfer of a security through a broker or financial institution. 4. Registration of a life or endowment insurance policy or annuity contract. 5. Delivery of a written assignment. 6. Irrevocable exercise of a power of appointment. 7. Delivery of a written notification or assignment of a right to future payment. 8. Execution, delivery and recordation of a conveyance of real property. 9. Issuance of a certificate of title. 10. Execution and delivery of an instrument of gift.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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