Susie
09-26-2006, 08:20 PM
This info was found
http://www.floridabar.org/tfb/TFBConsum.nsf/48e76203493b82ad852567090070c9b9/52e96cffd900e8c485256b2f006c5e7c?OpenDocument
GIFTS FOR MINORS OR PERSONS UNDER AGE TWENTY-ONE
If you have ever wanted to make a gift of property to a minor--that is a person under the age of 18 in Florida, you may have wondered if a minor can own or control property without help from an adult. In addition, you may have wondered if you can make a gift to a person who is at least age 18 but under age 21 and restrict that person's use of the property.
Custodianships, guardianships and trusts are three different ways under Florida law to make these types of gifts. This tape will concentrate on gifts under the Florida Uniform Transfers to Minors Act which are set up as custodianships. This law allows you to transfer property during your lifetime or by will to a custodian for the benefit of a person under age 21.
You can transfer all types of property under the Florida Uniform Transfers to Minors Act. Examples of the types of property that you can transfer include stocks, bonds, money held by a brokerage firm or a bank or other financial institution, life insurance policies, endowment policies or annuity contracts, interests in real estate, or automobiles or other tangible personal property.
How you actually make the transfer pursuant to the Florida Uniform Transfers to Minors Act will depend upon the type of property involved. For example, a transfer of real property will require a deed to be properly signed, witnessed, notarized and recorded. A transfer of an insurance policy or annuity contract will require an assignment or registration with the insurer.
When this law is used, you will transfer ownership of the property to the name of "Joe Jones as custodian for Bob Jones under the Florida Uniform Transfers to Minors Act." These words sound confusing and unnecessary, but they are required by the law. Joe Jones would be the custodian and Bob Jones would be the person under age 21. This form of custodianship can be used if Bob Jones is under 21 even if he is not a minor because he is at least 18.
When you name a custodian, you may name yourself or any other individual over the age of 21 to serve as the custodian. However, before naming yourself or a parent of the person under age 21 as the custodian, you should check the tax consequences. In some cases, a bank with trust powers, or a trust company may be named as custodian.
You or the custodian may designate a successor custodian to act if the first custodian should resign or die or become incapacitated.
A custodial gift to a person under age 21 is irrevocable, meaning it cannot be taken back. The custodian will have the right to invest the custodial property. Also, the custodian will have the discretion to pay the custodial property to the person under age 21 or to spend it for the benefit of the person under age 21 to the extent the custodian deems advisable. If the custodian does not use the property for the person under age 21, that person, if at least 14 years of age, or that person's guardian, or an interested party may ask a court to order the custodian to use so much of the property as the court considers advisable for the use and benefit of the person under age 21. When that person reaches age 21, the custodian must give that person the custodial property. There are some limited exceptions where the custodianship would end at age 18 rather than at age 21.
The custodian has a duty to invest the custodial property wisely. Certain investments which are not wise must be avoided, especially investments which are risky.
A custodian must also keep detailed and accurate records of all investments, income and expenses.
A custodian of property is entitled to reimbursement for the custodian's expenses, but the custodian may choose not to be reimbursed. In most cases, the custodian may also be paid for his, her or its time and services. Strict rules must be followed in order for a custodian to receive such compensation.
If you made a gift prior to October 1, 1985 under the Florida Gift to Minors Act, the old law applies to that gift. The old law was much more limited, for example, with respect to what type of property could be transferred. If you make a gift after October1, 1985 and mistakenly refer to the Florida Gifts to Minors Act instead of the new Act, the transfer will be covered under the new law.
This tape has discussed some of the most significant aspects of the Florida Uniform Transfers to Minors Act as pertains to custodianships. Guardianships which last until age 18 and trusts which can continue for a longer period of time are other alternatives to be explored and are the subjects of other tapes.
If you believe you need legal advice, call your attorney. If you do not have an attorney, call The Florida Bar Lawyer Referral Service at 1-800-342-8011, or the local lawyer referral service or legal aid office listed in the yellow pages of your telephone book.
http://www.floridabar.org/tfb/TFBConsum.nsf/48e76203493b82ad852567090070c9b9/52e96cffd900e8c485256b2f006c5e7c?OpenDocument
GIFTS FOR MINORS OR PERSONS UNDER AGE TWENTY-ONE
If you have ever wanted to make a gift of property to a minor--that is a person under the age of 18 in Florida, you may have wondered if a minor can own or control property without help from an adult. In addition, you may have wondered if you can make a gift to a person who is at least age 18 but under age 21 and restrict that person's use of the property.
Custodianships, guardianships and trusts are three different ways under Florida law to make these types of gifts. This tape will concentrate on gifts under the Florida Uniform Transfers to Minors Act which are set up as custodianships. This law allows you to transfer property during your lifetime or by will to a custodian for the benefit of a person under age 21.
You can transfer all types of property under the Florida Uniform Transfers to Minors Act. Examples of the types of property that you can transfer include stocks, bonds, money held by a brokerage firm or a bank or other financial institution, life insurance policies, endowment policies or annuity contracts, interests in real estate, or automobiles or other tangible personal property.
How you actually make the transfer pursuant to the Florida Uniform Transfers to Minors Act will depend upon the type of property involved. For example, a transfer of real property will require a deed to be properly signed, witnessed, notarized and recorded. A transfer of an insurance policy or annuity contract will require an assignment or registration with the insurer.
When this law is used, you will transfer ownership of the property to the name of "Joe Jones as custodian for Bob Jones under the Florida Uniform Transfers to Minors Act." These words sound confusing and unnecessary, but they are required by the law. Joe Jones would be the custodian and Bob Jones would be the person under age 21. This form of custodianship can be used if Bob Jones is under 21 even if he is not a minor because he is at least 18.
When you name a custodian, you may name yourself or any other individual over the age of 21 to serve as the custodian. However, before naming yourself or a parent of the person under age 21 as the custodian, you should check the tax consequences. In some cases, a bank with trust powers, or a trust company may be named as custodian.
You or the custodian may designate a successor custodian to act if the first custodian should resign or die or become incapacitated.
A custodial gift to a person under age 21 is irrevocable, meaning it cannot be taken back. The custodian will have the right to invest the custodial property. Also, the custodian will have the discretion to pay the custodial property to the person under age 21 or to spend it for the benefit of the person under age 21 to the extent the custodian deems advisable. If the custodian does not use the property for the person under age 21, that person, if at least 14 years of age, or that person's guardian, or an interested party may ask a court to order the custodian to use so much of the property as the court considers advisable for the use and benefit of the person under age 21. When that person reaches age 21, the custodian must give that person the custodial property. There are some limited exceptions where the custodianship would end at age 18 rather than at age 21.
The custodian has a duty to invest the custodial property wisely. Certain investments which are not wise must be avoided, especially investments which are risky.
A custodian must also keep detailed and accurate records of all investments, income and expenses.
A custodian of property is entitled to reimbursement for the custodian's expenses, but the custodian may choose not to be reimbursed. In most cases, the custodian may also be paid for his, her or its time and services. Strict rules must be followed in order for a custodian to receive such compensation.
If you made a gift prior to October 1, 1985 under the Florida Gift to Minors Act, the old law applies to that gift. The old law was much more limited, for example, with respect to what type of property could be transferred. If you make a gift after October1, 1985 and mistakenly refer to the Florida Gifts to Minors Act instead of the new Act, the transfer will be covered under the new law.
This tape has discussed some of the most significant aspects of the Florida Uniform Transfers to Minors Act as pertains to custodianships. Guardianships which last until age 18 and trusts which can continue for a longer period of time are other alternatives to be explored and are the subjects of other tapes.
If you believe you need legal advice, call your attorney. If you do not have an attorney, call The Florida Bar Lawyer Referral Service at 1-800-342-8011, or the local lawyer referral service or legal aid office listed in the yellow pages of your telephone book.