38-621. Same; establishment of trust fund or savings plan; requirements; withdrawals by beneficiary; trustee powers and duties.
38-621
38-621. Same; establishment of trust fund or savingsplan; requirements; withdrawals by beneficiary; trustee powers andduties.(a) A parent or legal guardian entitled to the physicalcustody, care and control of the minor child shall establish a trust fund orothersavings plan pursuant to this section at a bank, savings and loan institution,credit union or brokerage firm or company registered under the investmentcompany act of 1940 within seven business days after the minor child's contractissigned by the minor child and the employer, unless a similar trust fund orothersavings plan has been previously established for the purpose of preserving forthe benefit of the minor child the portion of the minor child's gross earningspursuant toparagraph (1) of subsection (b) of K.S.A. 38-620, and amendments thereto, orthecontract described byparagraph (1) of subsection (c) of K.S.A. 38-620, and amendments thereto. Atleastone parent or guardianshall be the trustee of the trust fund or other savings plan for the benefit oftheminor child.
(b) Except as otherwise provided in this section, prior to the date on whichthe beneficiary of the trust funds or other savings plan attains 18years of age or the issuance of a declaration of right of majority of the minorchildunderK.S.A. 38-109, and amendments thereto, no withdrawal by the beneficiary may bemade of funds on depositin the trust fund or other savings plan without written order of the districtcourt pursuant to paragraph (7) of subsection (b) or paragraph (5) ofsubsection (c) of K.S.A. 38-620, and amendments thereto. Upon reaching 18 yearsofage, or obtaining theissuance of a declaration of right of majority under K.S.A. 38-109, andamendments thereto, thebeneficiary may withdraw the funds on deposit in the trust fund or othersavings plan only after providing a certified copy of the beneficiary's birthcertificate to the financial institution where the trust fund or other savingsplan is located.
(c) The trustee or trustees shall prepare a written statement within 10business days after the minor's contract is signed by the minor and theemployer, under penaltyof perjury, that shall include the name, address and telephone number of thefinancial institution, the name of the account, the number of the account, thename of the minor child beneficiary, the name of the trustee or trustees of theaccount and any additional information needed by the minor child's employer todeposit into the account the portion of the minor child's gross earningsprescribedby paragraph (1) of subsection (b) or paragraph (1) of subsection (c) ofK.S.A. 38-620, and amendments thereto. The trustee or trustees shall attach tothewritten statement a trueand accurate photocopy of any information received from the financialinstitution confirming the creation of the account, such as an accountagreement, account terms, passbook or other similar writings.
(d) If the trust fund or other savings plan is established in the UnitedStates, it shall be established either with a financial institution that is andremains insured at all times by the federal deposit insurance corporation, thesecurities investor protection corporation, or the nationalcredit union share insurance fund or their respective successors or with a company that is and remains registered under the investment company actof 1940. If the trust fund or other savings plan is established outside theUnited States, the financial institution shall be a first-class internationalbank. The trustee or trustees of the trust fund or other savings plan shall bethe only individual, individuals, entity or entities with the obligation orduty to ensure that the funds remain in a financial institution insured inaccordance with this section.
(e) Upon application by the trustee or trustees to the financial institutionor company where the trust fund or other savings plan is held, the trust fundsmay be handled by the trustee or trustees in any of the following methods:
(1) The trustee or trustees may transfer funds to another account at thesame financial institution or company, provided that the funds transferredshall continue to be subject to this act.
(2) The trustee or trustees may transfer funds to another financialinstitution or company, provided that the funds transferred shall continue tobe subject to this act and that the trustee or trustees have providedwritten notification to the financial institution or company to which the fundswill be transferred that the funds are subject to this section and writtennotice of the requirements of this act.
(3) The trustee or trustees may use all or a part of the funds to purchase,in the name of and for the benefit of the minor child: (A) Mutual funds offeredby acompany registered under the investment company act of 1940, so long as thosemutual funds are broad-based index funds or invest broadly across the domesticor a foreign regional economy and are not sector funds or with a company thatis and remains registered under the investment company act of 1940 asauthorized by this section; or (B) governmentsecurities and bonds, certificates of deposit, money market instruments, moneymarket accounts or mutual funds investing solely in those government securitiesand bonds, certificates, instruments and accounts that are available at thefinancial institution where the trust fund or other savings plan is held,so long as that the funds remain in trust at a financial institution insured bythe federal deposit insurance corporation, the securities investor protectioncorporation, or the national credit union share insurance fund if within theUnited States, or maintained in a first-class international bank if not withinthe United States, if thosepurchases have a maturity date on or before the date upon which the minor childwillattain 18 years of age, and any proceedsaccruingfrom those purchases will be redeposited into that account or accounts or usedtofurther purchase any of those or similar securities, bonds, certificates,instruments, funds or accounts.
History: L. 2000, ch. 174, § 7; July 1.