Under New York Law, custodial property is created and a transfer is made whenever:
1. An uncertificated security or certificated security in registered form is either:
(i) registered in the name of the transferor, an adult other than the
transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the New York Uniform Transfers to Minors Act"; or
(ii) delivered, if in certificated form, or any document necessary for
the transfer of an uncertificated security is delivered, together with
any necessary endorsement, to an adult other than the transferor or to a trust company, as custodian, accompanied by an instrument in substantially the form set forth in paragraph (b);
2. Money is paid or delivered, or a security held in the name of a broker, financial institution, or its nominee is transferred, to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the New York Uniform Transfers to Minors Act";
3. The ownership of a life or endowment insurance policy or annuity
contract is either:
(i) registered with the issuer in the name of the transferor, an adult
other than the transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the New York Uniform Transfers to Minors Act"; or
(ii) assigned in a writing delivered to an adult other than the
transferor, or to a trust company whose name in the assignment is followed in substance by the words: "as custodian for (name of minor) under the New York Uniform Transfers to Minors Act";
4. An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer, or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company, whose name in the notification is followed in substance by the words: "as custodian for (name of minor) under the New York Uniform Transfers to Minors Act";
5. An interest in real property is recorded in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the New York Uniform Transfers to Minors Act";
6. A certificate of title issued by a department or agency of a state
or of the United States which evidences title to tangible personal
property is either:
(i) issued in the name of the transferor, an adult other than the
transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the New York Uniform Transfers to Minors Act"; or
(ii) delivered to an adult other than the transferor or to a trust
company, endorsed to that person followed in substance by the words: "as custodian for (name of minor) under the New
York Uniform Transfers to Minors Act"; or
7. (a) An interest in any property not described in subparagraphs (1) through (6) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in paragraph (b).
(b) An instrument in the following form satisfies the requirements of
clause (ii) of subparagraph (1) and subparagraph (7) of paragraph (a)
Nassau Transfer of Property under the New York Uniform Transfer to Minor's Act is a legal process that allows individuals in Nassau County, New York, to transfer assets and property to minors in a structured and controlled manner. It falls under the broader framework of the Uniform Transfer to Minor's Act (TMA) that has been adopted by many states in the United States, including New York. Under the Nassau Transfer of Property, the transferor, who is usually a parent, grandparent, or guardian, can designate a custodian to manage and hold the assets on behalf of the minor until they reach a certain age. The purpose of this transfer is to ensure the seamless transition of property ownership while providing financial security for the minor. The New York Uniform Transfer to Minor's Act offers various options for transferring property to minors in Nassau County. These include: 1. Cash and Securities: The transferor can gift cash, stocks, bonds, mutual funds, or other securities to a minor, which will be managed by the designated custodian until the minor reaches the age of majority. 2. Real Estate: Another option is to transfer real estate property, such as land, houses, or commercial buildings, to a minor with the custodian holding the title until the minor comes of age. 3. Intellectual Property: Intellectual property, such as copyrights, patents, or trademarks, can also be transferred to a minor under the New York Uniform Transfer to Minor's Act. The custodian ensures the protection and management of these assets until the minor is old enough to take control. 4. Other Tangible Assets: Besides cash, securities, real estate, and intellectual property, various other tangible assets like vehicles, precious metals, or artwork can be transferred to a minor with the custodian acting as a caretaker until the minor becomes an adult. It is important to note that the transfer of property under the New York Uniform Transfer to Minor's Act establishes a fiduciary relationship between the custodian and the minor. The custodian has a legal obligation to manage the assets prudently and solely for the minor's benefit. The custodian is permitted to use the assets to provide for the minor's education, healthcare, living expenses, and other necessary expenditures. However, any unauthorized use or misuse of the assets can be subject to legal consequences. Nassau Transfer of Property under the New York Uniform Transfer to Minor's Act aims to provide a framework for protecting and managing assets for the benefit of minors in a responsible and systematic manner. It offers parents, grandparents, or guardians in Nassau County an avenue to transfer property to the next generation while ensuring it is responsibly utilized for the minor's best interests.
