PA 07-169—sSB 1047
AN ACT CONCERNING THE CONNECTICUT UNIFORM TRANSFERS TO MINORS ACT
SUMMARY: The Uniform Transfers to Minors Act allows a person to transfer property to a custodian for the benefit of a minor. The custodian manages the property and can distribute money to or for the benefit of the minor.
Prior law required the custodian to transfer the property to the minor when the minor turned 21. This act gives the custodian the option to distribute all or part of the property to a trust, at any time before the minor turns 21 and without court order, under certain conditions. The conditions are that:
1. the custodian believes in good faith that the distribution to the trust is in the minor's best interest;
2. the trust makes the minor the sole beneficiary during the minor's life;
3. it meets federal tax requirements that (a) the trust authorize the property to be expended by or for the benefit of the minor before age 21 and (b) the property pass to the minor at age 21 or the minor's estate if he or she dies before age 21, but the minor can extend the trust on turning 21; and
4. if the trust's terms give the minor the right to withdraw the assets at age 21, the trust must also give the minor the right to withdraw remaining assets at age 25 and the trustee must give the minor written notice of the withdrawal right by certified mail or similar means on or before age 21 and, if assets remain, on or before age 25.
The act provides that the right of withdrawal does not lapse unless the minor receives notice and the time allowed for withdrawal is at least 30 days after the minor turns the applicable age or receives notice, whichever is later.
The act provides that a distribution to a trust in this manner terminates the custodianship for the distributed property.
As for deliveries, payments, or expenditures under existing law, the act provides that a distribution is in addition to and does not substitute for or affect anyone's obligation to support a minor.
EFFECTIVE DATE: October 1, 2007
OLR Tracking: CR: RC: PF: TS