Chapter 126 Property Held for the Benefit of Minors; Uniform Transfers to Minors Act

A person under a duty to pay or deliver money or personal property to a minor may pay or deliver the money or property, in amounts not exceeding $10,000 per year, to: A person having the care and custody of the minor with whom the minor resides; A guardian of the minor; or A financial institution incident to a deposit in a federally insured savings accoun…

126.725 Settlement agreement on behalf of minor; payment or deposit; disbursement; liability

A person having legal custody of a minor may enter into a settlement agreement with a person against whom the minor has a claim if: A conservator has not been appointed for a minor; The total amount of the claim, not including reimbursement of medical expenses, liens, reasonable attorney fees and costs of suit, is $25,000 or less if paid in cash or if paid…

126.730 Payment of moneys to minor pursuant to judgment; payment or deposit; disbursement

Except as provided in subsection (4) of this section, a person under a duty to pay moneys to a minor pursuant to a judgment of the court in an amount not exceeding $25,000 may pay the moneys to a person having legal custody of the minor or to a guardian of the minor. Unless the minor is a ward in the custody of the Department of Human Services under ORS 419B…

126.735 Legislative findings; minor’s capacity to contract for bank account; consent; liability

The Legislative Assembly finds that there are in the State of Oregon unemancipated minors entitled to payment or delivery of moneys under ORS 126.700, 126.725 or 126.730 who are capable of establishing and maintaining a bank account in their sole name for their sole use and administration but who cannot contract to establish a bank account due to perceived l…

126.805 Definitions for ORS 126.805 to 126.886

As used in ORS 126.805 to 126.886, except where the context otherwise requires: “Adult” means any person who has attained the age of 21 years. “Beneficiary” means a person for whose benefit a transfer has been made to a custodian. “Broker” means a person lawfully engaged in the business of effecting transactions in securities or commodities for the accoun…

126.809 Applicability of ORS 126.805 to 126.886; jurisdiction over custodian

ORS 126.805 to 126.886 apply to a transfer that refers to ORS 126.805 to 126.886 in the designation under ORS 126.832 (1) by which the transfer is made if at the time of the transfer, the transferor, the beneficiary or the custodian is a resident of this state or the custodial property is located in this state. The custodianship so created remains subject to…

126.810 [1959 c.640 §2; 1967 c.300 §2; 1981 c.443 §2; repealed by 1985 c.665 §27]

126.812 Nomination of custodian; effective date of custodianship and transfer of custodial property

A person having the right to designate the recipient of property transferable upon the occurrence of a future event may revocably nominate a custodian to receive the property for a beneficiary upon the occurrence of the event by naming the custodian followed in substance by the words: “As custodian for _____ (name of beneficiary) under the Oregon Uniform Tra…

126.815 [1959 c.640 §3; 1967 c.300 §3; 1973 c.823 §110; 1981 c.443 §3; repealed by 1985 c.665 §27]

126.816 Irrevocable gifts or exercise of power of appointment

A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a beneficiary pursuant to ORS 126.832.

126.817 [1983 c.457 §3; repealed by 1985 c.665 §27]

126.819 Irrevocable transfer by personal representative or trustee to custodian

A personal representative or trustee may make an irrevocable transfer pursuant to ORS 126.832 to a custodian for the benefit of a beneficiary as authorized in the governing will or trust. If the testator or settlor has nominated a custodian under ORS 126.812 to receive the custodial property, the transfer must be made to that person. If the testator or set…

126.820 [1959 c.640 §4; 1983 c.457 §4; repealed by 1985 c.665 §27]

126.822 Transfer to custodian in absence of authorization

Subject to subsection (3) of this section, a personal representative or trustee may make an irrevocable transfer to another adult or trust company as custodian for the benefit of a minor pursuant to ORS 126.832, in the absence of a will or under a will or trust that does not contain an authorization to do so. Subject to subsection (3) of this section, a con…

126.825 [1959 c.640 §5; 1967 c.300 §4; 1981 c.443 §4; repealed by 1985 c.665 §27]

126.826 Irrevocable transfer by person holding property of or owing liquidated debt to minor

Subject to subsections (2) and (3) of this section, a person not subject to ORS 126.819 or 126.822 who holds property of or owes a liquidated debt to a minor not having a conservator may make an irrevocable transfer to a custodian for the benefit of the minor pursuant to ORS 126.832. If a person having the right to do so under ORS 126.812 has nominated a cu…

126.829 Written acknowledgment of delivery as receipt

A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian pursuant to ORS 126.805 to 126.886.

126.830 [1959 c.640 §6; 1973 c.823 §111; repealed by 1985 c.665 §27]

126.832 Creation and transfer of custodial property; form of instrument

Custodial property is created and a transfer is made if any of the following occur: An uncertificated security or a certificated security in registered form is either: Registered in the name of the transferor, in the name of an adult other than the transferor or the beneficiary, or in the name of a trust company, followed in substance by the words specifie…

126.835 [1959 c.640 §7; 1967 c.300 §5; 1981 c.443 §5; repealed by 1985 c.665 §27]

126.836 Limitations on custodianship; age requirement for transfers

A transfer may be made only for one beneficiary and only one person may be the custodian. All custodial property held under ORS 126.805 to 126.886 by the same custodian for the benefit of the same beneficiary constitutes a single custodianship. A transfer may be made for the benefit of a beneficiary under ORS 126.805 to 126.886 at any time before the benefi…

126.839 Validity of transfer

The validity of a transfer made in a manner prescribed in ORS 126.805 to 126.886 is not affected by: Failure of the transferor to comply with ORS 126.832 (4) concerning possession and control; Designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian und…

126.840 [1959 c.640 §8; repealed by 1985 c.665 §27]

126.842 Duties of custodian; standard of care

A custodian shall: Take control of custodial property; Register or record title to custodial property if appropriate; and Collect, hold, manage, invest and reinvest custodial property. In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent investor dealing with property of another and is not…

126.845 [1959 c.640 §9; 1973 c.823 §112; 1981 c.443 §7; repealed by 1985 c.665 §27]

126.846 Rights, powers and authority of custodian

A custodian, acting in a custodial capacity, has all the rights, powers and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers and authority in that capacity only. This section does not relieve a custodian from liability for breach of ORS 126.842.

126.849 Payments to and expenditures for beneficiary; effect on duty to support beneficiary

A custodian may deliver or pay to the beneficiary or expend for the beneficiary’s benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the beneficiary, without court order and without regard to: The duty or ability of the custodian personally or of any other person to support the beneficiary; or Any othe…

126.850 [1959 c.640 §§10,12; 1967 c.300 §6; 1973 c.823 §113; repealed by 1985 c.665 §27]

126.852 Reimbursement to custodian for reasonable expenses; compensation; bond

A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian’s duties. Except for one who is a transferor under ORS 126.816, a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year. Except as provided…

126.855 [1959 c.640 §11; repealed by 1967 c.300 §7; (126.856 enacted in lieu of 126.855)]

126.856 [1967 c.300 §8 (enacted in lieu of 126.855); 1973 c.823 §114; 1981 c.443 §6; repealed by 1985 c.665 §27]

126.857 Third person’s duties in dealing with custodian

A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining: The validity of the purported custodian’s designation; The propriety of, or the authorit…

126.859 Claims against custodial property; liability of custodian and beneficiary

A claim based on a contract entered into by a custodian acting in a custodial capacity, an obligation arising from the ownership or control of custodial property or a tort committed during the custodianship, may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the benefi…

126.860 [1959 c.640 §§13,14; 1967 c.300 §9; 1973 c.823 §115; repealed by 1981 c.443 §8]

126.862 Refusal to serve as custodian; substitute and successor custodians; resignation; removal

A person nominated under ORS 126.812 or designated under ORS 126.832 as custodian may decline to serve by delivering a valid disclaimer to the person who made the nomination or to the transferor or the transferor’s legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian able, willing and eligible to serve was…

126.865 [1959 c.640 §15; repealed by 1967 c.300 §11]

126.866 Petition for accounting by custodian, determination of responsibility

A beneficiary who has attained 14 years of age, the beneficiary’s guardian or legal representative, an adult member of the beneficiary’s family, a transferor or a transferor’s legal representative may petition the court: For an accounting by the custodian or the custodian’s legal representative; or For a determination of responsibility, as between the cust…

126.869 Time of transfer of custodial property to beneficiary or beneficiary’s estate

Except as provided in ORS 126.872, the custodian shall transfer in an appropriate manner the custodial property to the beneficiary or to the beneficiary’s estate upon the earlier of: The beneficiary’s attainment of 21 years of age with respect to custodial property transferred under ORS 126.816 or 126.819; The beneficiary’s attainment of 18 years of age wi…

126.870 [1959 c.640 §16; repealed by 1985 c.665 §27]

126.872 Delayed transfer of custodial property to beneficiary

Except as provided in this section, a person making a transfer to a custodian under ORS 126.816 or 126.819 may provide for a delayed transfer of the custodial property to the beneficiary at a specific time after the beneficiary attains the age of 21 years and: Before the beneficiary attains the age of 25 years; or The date on which the beneficiary attains …

126.875 Accounting by custodian

The custodian is not required to account to the beneficiary or to any other person for the acts and proceedings of the custodian unless the beneficiary, a parent of the beneficiary, the legal representative of the beneficiary or a successor custodian petitions the circuit court for an accounting no later than two years after the beneficiary becomes an adult …

126.877 Applicability of ORS 126.805 to 126.886 to transfers made after January 1, 1986

ORS 126.805 to 126.886 apply to a transfer within the scope of ORS 126.809 made after January 1, 1986, if: The transfer purports to have been made under the Oregon Uniform Gifts to Minors Act; or The instrument by which the transfer purports to have been made uses in substance the designation “as custodian under the Uniform Gifts to Minors Act” or “as cust…

126.879 Validation of transfer made before January 1, 1986

Any transfer of custodial property made before January 1, 1986, is validated notwithstanding that there was no specific authority in ORS 126.805 to 126.886 prior to January 1, 1986, for the coverage of custodial property of that kind or for a transfer from that source at the time the transfer was made. ORS 126.805 to 126.886 apply to all transfers made befo…