Transfer of Custodial Property Instrument
(California Uniform Transfer to Minors Act) (CA)

Summary

This template is a formal transfer or title document that may be used to make a gift to a minor under the California Uniform Transfers to Minors Act (UTMA) (see Cal. Prob. Code § 3900 et seq.) when the custodian is to be a trust company or an adult other than the transferor. This template includes practical guidance, drafting notes, and an optional clause. This template is primarily used to transfer two types of property: (1) unregistered securities that are not held by a broker or financial institution; and (2) uncertificated and unregistered tangible personal property. This template is prescribed by Cal. Prob. Code § 3909(b). It includes space for the custodian to acknowledge receipt of the property as custodian for the minor. Since acknowledgment of receipt is not necessary when the transferor intends to hold the gift property as custodian for the minor, this template should not be used when the transferor is to be the custodian. Nor should it be used when some evidence other than an acknowledgment of receipt will establish that the gift has been made. If, for example, the gift property is to be held by a broker or financial institution in an account in the name of the custodian, acknowledgment of receipt of the property is not required to establish that the gift has been made. See Cal. Prob. Code § 3909(a)(2). Similarly, when the gift property is registered with a corporation or governmental agency, acknowledgment of receipt is not necessary. See Cal. Prob. Code § 3909(a)(1)(A), (2)-(6). If the transferor is gifting real property, the gift should be made by deed, and the deed should be recorded in the office of the county recorder. See Cal. Prob. Code § 3909(a)(5). For additional information related to minors and estate planning, see Governing Law of Probate, Jurisdiction and Proceedings (CA), Purposes and Uses of a Will (CA), Requisites, Instrumentation, and Will Provisions (CA), and Estate Planning Strategies and Devices (CA).