§ 18-13-13 - Declination, resignation, incapacity, death, or removal of custodial trustee – Designation of successor custodial trustee.
SECTION 18-13-13
§ 18-13-13 Declination, resignation,incapacity, death, or removal of custodial trustee – Designation ofsuccessor custodial trustee. – (a) Before accepting the custodial trust property, a person designated ascustodial trustee may decline to serve by notifying the person who made thedesignation, the transferor, or the transferor's legal representative. If anevent giving rise to a transfer has not occurred, the substitute custodialtrustee designated under § 18-13-3 becomes the custodial trustee, or, if asubstitute custodial trustee has not been designated, the person who made thedesignation may designate a substitute custodial trustee pursuant to §18-13-3. In other cases, the transferor or the transferor's legalrepresentative may designate a substitute custodial trustee.
(b) A custodial trustee who has accepted the custodial trustproperty may resign by:
(1) Delivering written notice to a successor custodialtrustee, if any, the beneficiary and, if the beneficiary is incapacitated, tothe beneficiary's conservator, if any; and
(2) Transferring or registering, or recording an appropriateinstrument relating to, the custodial trust property, in the name of, anddelivering the records to, the successor custodial trustee identified undersubsection (c) of this section.
(c) If a custodial trustee or successor custodial trustee isineligible, resigns, dies, or becomes incapacitated, the successor designatedunder § 18-13-2(g) or § 18-13-3 becomes custodial trustee. If thereis no effective provision for a successor, the beneficiary, if notincapacitated, may designate a successor custodial trustee. If the beneficiaryis incapacitated, or fails to act within ninety (90) days after theineligibility, resignation, death, or incapacity of the custodial trustee, thebeneficiary's conservator becomes successor custodial trustee. If thebeneficiary does not have a conservator or the conservator fails to act, theresigning custodial trustee may designate a successor custodial trustee.
(d) If a successor custodial trustee is not designatedpursuant to subsection (c) of this section, the transferor, the legalrepresentative of the transferor or of the custodial trustee, an adult memberof the beneficiary's family, the guardian of the beneficiary, a personinterested in the custodial trust property, or a person interested in thewelfare of the beneficiary, may petition the court to designate a successorcustodial trustee.
(e) A custodial trustee who declines to serve or resigns, orthe legal representative of a deceased or incapacitated custodial trustee, assoon as practicable, shall put the custodial trust property and records in thepossession and control of the successor custodial trustee. The successorcustodial trustee may enforce the obligation to deliver custodial trustproperty and records and becomes responsible for each item as received.
(f) A beneficiary, the beneficiary's conservator, an adultmember of the beneficiary's family, a guardian of the person of thebeneficiary, a person interested in the custodial trust property, or a personinterested in the welfare of the beneficiary, may petition the court to removethe custodial trustee for cause and designate a successor custodial trustee, torequire the custodial trustee to furnish a bond or other security for thefaithful performance of fiduciary duties, or other appropriated relief.