Section 11.4 Use of Conservatorship, Trust, or Custodianship

• Library: Trusts and Powers 2013 Supp

D. (§11.4) Use of Conservatorship, Trust, or Custodianship

Whether property should be transferred directly to a minor or, if an intermediary representative is to be used, what kind of representative, depends on the objective that the transferor desires to achieve. A custodianship may be created by a donor making a gift of property to the minor or by persons indebted to the minor using a custodian as an intermediary to receive payment on the minor’s behalf. A donor has considerable latitude to do whatever is desired. A debtor, such as an insurance company or personal representative, is interested mainly in making payment and obtaining a discharge of any future obligation of it to the minor with an appropriate release or court order if possible. Both a donor and...