COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 1CHAPTER 12 UNIFORM GIFTS TO MINORS ACT § 12101. Definitions. § 12102. Manner of Making Gift. § 12103. Effect of Gift. § 12104. Duties and Powers of Custodian. § 12105. Custodian =s Expenses, Compensation, Bond and Liabilities. § 12106. Exception of Thir d Persons from Liability . § 12107. Resignation, Death or Removal of Custodian; Bond; Designation of Successor Custodian. § 12108. Accounting by Custodian. § 12109. Construction. § 12110. Short Title. § 12111. Severability . SOURCE: This Chapter was added by P.L. 11 -115 as Article IV of Chapter III, Title IV, Part IV , Division Second of the Civil Code of Guam beginning with '1154. § 12101. Definitions. In this Chapter , unless the contest otherwise requires: (a) An adult is aperson who has attained the age of 18 years. (b) A bank is a bank, trust company , national banking association, savings bank. or industrial bank duly admit ted and licensed in Guam to accept the deposits of others. (c) A brokeris a person lawfully engag ed in the business of effecting transactions in securities for the account of others.
bank duly admit ted and licensed in Guam to accept the deposits of others. (c) A brokeris a person lawfully engag ed in the business of effecting transactions in securities for the account of others. The term includes a bank which effects such transac tions. The term also includes a person lawful ly engaged in buying and selling securi ties for his own account, throug h a broker or other wise, as a part of a regular business. (d) Court means the Superior Court. (e) The custodial property includes: (1) All securities, life insurance policies, annuity contracts and money under the supervi sion of the same custodian for th e same minor as a consequence of a gift or gifts made to the minor is a manner prescribed in this Chapter; (2) The income from the custodial property; andCOL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 2(3) The proceeds, immediate and remote, from the sale, exchange, conversion, investment, rein vestment, surrender or other disposition of such securi ties, money , life insurance policies, annuity contracts and income. (f) A custodian is a person so designated in a manner prescribed in this Chapter; the term includes a successor custodian.
securi ties, money , life insurance policies, annuity contracts and income. (f) A custodian is a person so designated in a manner prescribed in this Chapter; the term includes a successor custodian. (g) A financial institution is a bank, a federal savings and loan association, a savings institution chartered and supervised as a savings and loan or similar institution under federal law or the laws of a state or territory or a federal credit union or a credit union ch artered and supervised under the laws of a state or territory; a domes tic financial institution is one chartered and super vised under the laws of Guam or chartered and super vised under federal law and having its principal office in Guam; and an insur ed financial institution is one, deposits (includ ing a savings, share, certificate, or deposit account) in which are, in whole or in part, insured by the Federal Deposit Insurance Corporation or by the Federal savings and Loan Insurance Corporation or by a d eposit insurance fund approved by the laws of Guam. (h) A guar dianof a minor means the general guard ian, guardian, tutor, or curator of his property or estate appointed or qualified by a court of Guam or a state
ce fund approved by the laws of Guam. (h) A guar dianof a minor means the general guard ian, guardian, tutor, or curator of his property or estate appointed or qualified by a court of Guam or a state or territory . (i) An issuer is a person wh o places or authorizes the placing of his name on a security other than as a transfer agent to evidence that it represents a share. participation or other interest in his property or in an enterprise or to evidence his duty or undertaking to perform an obligation evidenced by the security , or who becomes responsible for or in place of any such person. (j) A legal representative of a person is his executor or the administrator , general guardian, guardian, committee, conservator , tutor or curator of his prope rty or estate. (k) A life insurance policy or annuity contract means a life insurance policy or annuity contract issued by an insurance company authorized to do business in Guam on the life of a minor to whom a gift of the policy or contract is made in the manner prescribed in this Chapter or on the life of a member of the minor =s family .COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 3(l) A member of a minor=s
tract is made in the manner prescribed in this Chapter or on the life of a member of the minor =s family .COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 3(l) A member of a minor=s family means any of the minor =s parents, grandparents, brothers, sisters, uncles and aunts, whether of the whole blood or the half blood, or by o r through legal adoption. (m) A minor is a person who has not attained the age of 18 years. (n) A security includes any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in an oil, gas or minin g title or lease or in payments out of production under such a title or lease, collateral trust certificate, transferrable share, voting trust certificate or , in general, any interest or instruments commonly known as a security , or any certificate of interest or participa tion in, any temporary or interim certific ate, receipt or certificate of deposit for , or any warrant or right to subscribe to or purchase, any of the foregoing. The term does not include a security of which the donor is the issuer.
certific ate, receipt or certificate of deposit for , or any warrant or right to subscribe to or purchase, any of the foregoing. The term does not include a security of which the donor is the issuer. A security is in registered form when it specifies a person entitled to it or to the rights it evidences and its transfer may be registered upon books maintained for that purpose by or on behalf of the issuer. (o) A transfer agent is a person who acts as authen ticating trustee, transfer agent, registrar , or other agent for an issuer in the registration for transfers of its securities or in the issue of new securities or in the cancellation of surrendered securities. (p) A trust company is a bank or corporation o r other legal entity authorized to exercise trust powers in Guam. SOURCE: CC '1154 added by P .L. 11 -115. NOTE: 1. The age of minority was lowered to 18 years by P .L. 14 -92:5 ('1101 of this Title). 2. Congress has restructured and renamed the agency handli ng insuring for federally -insured savings and loan institutions. 3. All references to Island Court in this and other parts of this Chapter have been changed to Superior Court pursuant to P .L.
andli ng insuring for federally -insured savings and loan institutions. 3. All references to Island Court in this and other parts of this Chapter have been changed to Superior Court pursuant to P .L. 12 -85, the Court Reorganization Act of 1974. § 12102. Manner of Making Gift. (a) An adult person may , during his lifetime, make a gift of a security , a life insurance policy or annuity contract or money to a person who is a minor on the date of the gift:COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 4(1) If the subject of the gift is a security in regis tered form , by registering it in the name of the donor , an adult member of the minor =s family , a guardian of the minor or a trust company , followed, in substance, by the words: as custodian for ____[name of mi nor]____ under the Guam Uniform Gift to Minors Act; (2) If the subject of the gift is a security not in registered form, by delivering it to an adult member , other than the donor, of the minor =s family , a guardian of the minor or a trust company , accompanied by statement in the following form, in substance, sig ned by the donor and the person designated as custodian: GIFT UNDER THE GUAM UNIFORM
y , a guardian of the minor or a trust company , accompanied by statement in the following form, in substance, sig ned by the donor and the person designated as custodian: GIFT UNDER THE GUAM UNIFORM GIFTS TO MINORS ACT I, ____[name of donor]____, hereby deliver to ____[name of custodian]____ as custodian for ____[name of minor]____ under the Guam Uni form Gift to Mino rs Act, the following securi ty[ies]: ____________________________ [Signature of Donor] ____[name of custodian]____ hereby acknowledges receipt of the above described security[ies] as custodi an for the above minor under the Guam Uniform Gift to Minors Act. Dated:__________ _________________________ (Signature of custodian) (3) If the subject of the gift is money , bypaying or delivering it to a broker or a financial institution for credit to an account in the name of the donor, am adult member of the minor =s family , a guardian of the minor , or a trust company , followed, in substance, bythe words as custodi an for ___[name of minor]____ under the Guam Uniform Gifts to Minors Act. (4) If the subject of the gift is a life insurance policy or annuity contract, bycausing the ownership of the policy or contract to be
_[name of minor]____ under the Guam Uniform Gifts to Minors Act. (4) If the subject of the gift is a life insurance policy or annuity contract, bycausing the ownership of the policy or contract to be registered with the issuing insur ance company in the name of the donor, an adult member of the minor =s family, a guardian of the minor or a trust company, followed, in substance, by the words: as c ustodian COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 5for ____[name of minor]____ under the Guam Uniform Gifts to Minors Act. (b) Any gift made in a manner prescribed in subsection (a) may be made to only one minor and only one person may be the custodian. (c) A donor who makes a gift to a minor in a manner prescribed in subsection (a) shall promptly do all things within his power to put the subject of the gift in the possession and control of the custodian, but neither the donor =s failure to comply with this subsection, nor his designation of an ineligible person as custodian, nor renunciation by the person designated as custodian affects the consummation of the gift. SOURCE: CC § 1155 added by P .L. 11 -115. § 12103. Effect of Gift.
n of an ineligible person as custodian, nor renunciation by the person designated as custodian affects the consummation of the gift. SOURCE: CC § 1155 added by P .L. 11 -115. § 12103. Effect of Gift. (a) A gift made in a manner prescr ibed in this Chapter is irrevocable and conveys to the minor indefeasibly vested legal title to the security , life insurance policy , annuity contract or money given, but no guardian of the minor has any right, power, duty or authority with respect to the c ustodial property except as provided in this Chapter . (b) By making a gift in a manner prescribed in this Chapter, the donor incorporates in his gift all the provisions of this Chapter and grants to the custodian, and to any issuer, transfer agent, bank, f inancial institution, life insurance company , broker or third person dealing with a person de signated as custodian, the respective powers, rights and immunities provided in this Chapter . SOURCE: CC '1156 added by P .L. 11 -115. § 12104. Duties and Powers of Custodian. (a) The custodi an shall collect, hold, manage, invest and reinvest the custodi an property .
vided in this Chapter . SOURCE: CC '1156 added by P .L. 11 -115. § 12104. Duties and Powers of Custodian. (a) The custodi an shall collect, hold, manage, invest and reinvest the custodi an property . (b) The custodian shall pay over to the minor for expendi ture by him, or expend for the minor =s benefi t, so much of or all the custodial property as the custodian deems advisable for the support, maintenance, education and benefit of the minor in the manner, at the time or times, and to the extent that the custodian in his discretion deems suitable and pro per, wit h or without court order, with or without regard to the duty of himself or of any other person to support the minor or his ability to do so, and with or without regard to any other income or proper tyof the minor which may be applicable or availab le for any such purpose.COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 6(c) The court, on the petition of a parent or guardian of the minor or of the minor if he has attained the age of fourteen years may order the custodian to pay over to the minor for expenditure by him or to expend so much of or all the custodial property as is necessary for the minor =s
e has attained the age of fourteen years may order the custodian to pay over to the minor for expenditure by him or to expend so much of or all the custodial property as is necessary for the minor =s support, maintenance or education. (d) To the extent that the custodial property is not so expended, the custodian shall deliver or pay it over to the minor on his attaining the age of eighteen years or, if the minor dies before attaining the age of eighteen years, he shall thereupon deliver or pay it over to the estate of the minor . (e) The custodian, notwithstanding statutes restrict ing investments by fiduciaries, shall invest and reinvest the custo dial property as would a prudent man of discretion and intelligence who is seeking a reasonable income and the preservation of his capital, except that he may , in his discretion and without liability to the minor or his estate, retain a security given to t he minor in a manner prescribed in this Chapter or hold money so given in an account in the financial institution to which it was paid or delivered by the donor. (f) The custodian may sell, exchange, convert, surren der or otherwise dispose of custodial pr operty in the manner, at
nt in the financial institution to which it was paid or delivered by the donor. (f) The custodian may sell, exchange, convert, surren der or otherwise dispose of custodial pr operty in the manner, at the time or times, for the price or prices and upon the terms he deems advisable. He may vote in person or by general or limited proxy a security which is custodial property . He may consent, directly or through a committee or other agents, to the reorganization, consolidation, merger , dissolution or liquida tion of an issuer, a security which is custodial property , and to the sale, lease, pledge or mortgage of any property by or to such an issuer , and to any other action by such an issuer. He may execute and deliver any and all instruments in writing which he deems advisable to carry out any of his powers as custodian. (g) The custodian shall register each security which is custodial property and in registered form in the name of the custodian followed, in substance, by the words: as custodian for ____[name of minor]____ under the Guam Uniform Gifts to Minors Act. The custodian shall hold all money which is custodial property in an account with a broker or in an insured domestic
custodian for ____[name of minor]____ under the Guam Uniform Gifts to Minors Act. The custodian shall hold all money which is custodial property in an account with a broker or in an insured domestic finan cial institution in the name of the custodian followed, in substance, by the words: as custodian for____[name of minor]____ under the Guam Uniform Gifts to Minors Act. The custodian shall keep all other custodial property separate and distinct from his own property in a manner to identify it clearly as custodial property.COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 7(h) The custodian shall keep records of all transactions with respect to the custodial property and make them available for inspection at reasonable intervals by a parent or legal represen tative of the minor or by the minor , if he has attained the age of fourteen years. (i) A custodian has and holds as powers in trust with respect to the custodial property , in addition to the rights and powers provided in this Chapter, all the rights and p owers which a guardian has with respect to property not held as custodial property .
ct to the custodial property , in addition to the rights and powers provided in this Chapter, all the rights and p owers which a guardian has with respect to property not held as custodial property . (j) If the subject of the gift is a life insurance policy or annuity contract, the custodian: (1) In his capacity as custodian, has all incidents of ownership in the policy or contract to the same extent as if he were the owner, except that the designated beneficia ryof any policy or contract on the life of the minor shall be the minor =s estate and the designated beneficiary of any policy or contract on the life of a person other than the minor shall be the custodian as custodian for the minor for whom he is acting; and (2) May pay premiums on the policy or contract out of the custodial property . SOURCE: CC '1156.1 added by P .L. 11 -115. § 12105. Custodian =s Expenses, Compens ation, Bond and Liabilities. (a) A custodian is entitled to reimbursement from the custodial property for his reasonable expenses incurred in the performance of his duties. (b) A custodian may act without compensation for his services.
ustodian is entitled to reimbursement from the custodial property for his reasonable expenses incurred in the performance of his duties. (b) A custodian may act without compensation for his services. (c) Unless he is a donor , a custodian may receive from the custodial property reasonable compensation for his services determined by one of the following standards in the order stated: (1) A direction by the donor when the gift is made; (2) A statute of Guam applicable to cu stodians; (3) The statute of Guam applicable to guardians; (4) An order of the court. (d) Except as otherwise provided in this Chapter, a custodian shall not be required to give a bond for the perfor mance of his duties.COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 8(e) A custodian not compensated for his services is not liable for losse s to the custodial property unless they result from his bad faith, intentional wrongdoing or gross negli gence or from his failure to maintain the standard of prudence in investing the custodial property provided in the Article. SOURCE: CC '1156.2 added by P .L. 11 -115. § 12106. Exception of Third Persons from Liability.
ailure to maintain the standard of prudence in investing the custodial property provided in the Article. SOURCE: CC '1156.2 added by P .L. 11 -115. § 12106. Exception of Third Persons from Liability. No issuer , transfer agent, bank, life insurance company , broker or other person or financial institution acting on the instructions of or other wise dealing with any person purporting to act as a donor or in the capacity of a custodi an is responsible for deter mining whether the person designated as custodian by the purported donor or by the custodian or purporting to act as a custodian has been duly des ignated or whether any purchase, sale or transfer to or by or any other act of any person purporting to act in the capacity of custodian is in accordance with or authorized by this Chapter or is obliged to inquire into the validity or propriety under this Chapter of any instrument or instruc tions executed or given by a person purporting to ac t as a donor or in the capacity of a custodian, or is bound to see to the application by any person purporting to act in the capacity of a custodian of any money or ot her property paid or delivered to him.
donor or in the capacity of a custodian, or is bound to see to the application by any person purporting to act in the capacity of a custodian of any money or ot her property paid or delivered to him. No issuer , transfer agent, bank, life insurance company , broker or other person or financial institution acting on any instrument of designation of a successor custodian, executed as provided in § 12107(a) by a minor to whom a gift has been made in a manner prescribed in this Chapter and who has attained the age of fourteen years, is responsible for determining whether the person designated bythe minor as successor custodian has been duly designated, or is obliged toinquire into the validity or propriety under this Chapter of the instrument of designation. SOURCE: CC '1156.3 added by P .L. 11 -115. § 12107. Resignation, Death or Removal of Custodian; Bond; Designation of Successor Custodian. (a) Only an adult member o f the minor =s family , a guardian of the minor or a trust company is eligible to become [a] successor custodian. A custodian may designate his successor by executing and dating an instrument of designation before a subscribing witness other than the success or; the
is eligible to become [a] successor custodian. A custodian may designate his successor by executing and dating an instrument of designation before a subscribing witness other than the success or; the instru ment of designation may but need not contain the resigna tion of the custodian. If the custodian does not so designate his successor before he dies or becomes legally incapacitat ed, and the minor COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 9has attained the age of fourteen years, the minor may designate a successor custodian by execut ing an instrument of designation before a subscribing witness other than the successor . Asuccessor custodian has all the rights, powers, duties and immunities of a custodian designated in a manner prescr ibed by this Chapter . (b) The designation of a successor custodian as provid ed in Subsection (a) takes effect as to each item of the custodial property when the custodian resigns, dies or becomes legally incapacitated and the custodian or his legal repre sentative: (1) Causes the item, if is a security in registered form or a life insurance policy or annuity contract, to be registered, with the issuing insurance company
e custodian or his legal repre sentative: (1) Causes the item, if is a security in registered form or a life insurance policy or annuity contract, to be registered, with the issuing insurance company in the case of a life insurance policy or annuity contract, in the name of the successo r custodian followed, in substance, by the words: as custodian for ____ [name of minor] ____ under the Guam Uniform Gifts to Minors Act; and (2) Delivers or causes to be delivered to the successor custodian any other item of the custodial property , togethe r with the instrument of designation of the succes sor custodian or a true copy thereof and any additional instruments required for the transfer thereof to the successor custodian. (c) A custodian who executes an instrument of designa tion of his successor containing the custodian's resignation as provided in Subsection (a) shall promptly do all things within his power to put each item of the custodian proper tyin the possession and control of the successor custodian named in the instrument. The legal repr esentative of a custodian who dies or becomes legally incapacitated shall promptly do all things within his power to put each item of the
e successor custodian named in the instrument. The legal repr esentative of a custodian who dies or becomes legally incapacitated shall promptly do all things within his power to put each item of the custodial property in the possession and control of the successor custodian named in an instrument of designa tion exe cuted as provided in subsection (a) by the custodian or , if none, by the minor if he has no guardian and has attained the age of fourteen years or in the possession and control of the guardian of the minor if he has a guardian. If the custodian has execute d as provided in subsection (a) more than one instrument of designation, his legal repre sentative shall treat the instrument dated on an earlier date as having been revoked by the instrument dated on a later date. d) If a person designated as custodian or as successor custodian by the custodian as provided in subsection (a) is not eligible, dies or becomes COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 10legally incapacitated before the minor attains the age of eighteen years and if the minor has a guardian, the guardian of the minor shall be successor custodi an.
S CH.12UNIFORM GIFTS TO MINORS ACT 10legally incapacitated before the minor attains the age of eighteen years and if the minor has a guardian, the guardian of the minor shall be successor custodi an. If the minor has no guardian and if no successor custodian who is eligible and has not died or become legally incapacitat ed has been designated as provided in subsection (a), a donor, his legal representative, the legal representative of the custodi an or an adult member of the minor =s family may petition the court for the designation of a successor custodian. (e) A donor, the legal representative of a donor, a succes sor custodian, an adult member of the minor =s family , a guardian of the mino r or the minor , if he has attained the age of fourteen years, may petition the court that, for cause shown in the petition, the custodian be designated or, in the alterna tive, that the custodian be required to give bond for the performance of his duties. (f) Upon the filing of a petition as provided in this section, the court shall grant an order , directed to the persons and returnable on such notice as the court may require, to show cause why the relief prayed for in the petition should
ovided in this section, the court shall grant an order , directed to the persons and returnable on such notice as the court may require, to show cause why the relief prayed for in the petition should not be granted and , in due course, grant such relief as the court finds to be in the best interests of the minor . SOURCE: CC '1156.4 added by P .L. 11 -115. § 12108. Accounting by Custodian. (a) The minor, if he has attained the age of fourteen years, or the legal represen tative of the minor , an adult member of the minor =s family , or a donor or his legal representative may petition the court for an accounting by the custodian or his legal representa tive. (b) The court, in a proceeding under this Chapter or otherwise, may require or permit the custodian or his legal representative to account and, if the custodian is removed, shall so require and order delivery of all custodial property to the successor custodian and the execution of all instru ments required for the transfer thereof. SOURCE: CC '1156.5 added by P .L. 11 -115. § 12109. Construction. (a) This Chapter shall be so con strued as to effectuate its general purpose to make uniform the law of those states and territories
SOURCE: CC '1156.5 added by P .L. 11 -115. § 12109. Construction. (a) This Chapter shall be so con strued as to effectuate its general purpose to make uniform the law of those states and territories which enact it. (b) This Chapter shall not be con strued as providing an exclusive method for making gifts to minors.COL12010619GCA PERSONAL RELATIONS CH.12UNIFORM GIFTS TO MINORS ACT 11SOURCE: CC '1156.6 added by P .L. 11 -115. § 12110. Short Title. This Chapter may be cited as the Guam Uniform Gifts to Minors Act. SOURCE: CC '1156.7 added by P .L. 11 -115. § 12111. Severab ility. If any provision of this Chapter or the application thereof to any pe rson or circumstances is held invalid, the invalidity shall not affect other provisions or application of this Chapter which can be given effect without the invalid provision or a pplication, and to this end the provi sions of this Chapter are severable. SOURCE: CC '1156.8 added by P .L.11 -115. ----------COL120106Guam Legal Code