CHAPTER 196

FORMERLY

HOUSE BILL NO. 316

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 45, PART V, TITLE 12 OF THE DELAWARE CODE, MAKING CERTAIN CHANGES IN THE DELAWARE UNIFORM TRANSFERS TO MINORS ACT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Section 4501 by deleting clause (4) thereof in its entirety, renumbering clauses (5), (6), (7), and (8) as clauses (4), (5), (6), and (7), respectively, and adding the following new clause (8):

"(8) 'Guardian' means a person appointed or qualified by a court to act as
general, limited or temporary guardian of a minor's property or a person legally authorized to perform substantially the same functions, including a conservator."

Section 2. Amend subsection (c) of Section 4505 by inserting the word "not"
immediately after the word "has" and immediately before the word "nominated".

Section 3. Amend subsection (b) of Section 4506 by deleting the word "conservator" and substituting therefor the word "guardian".

Section 4. Amend Section 4506 by deleting subsection (c) thereof in its entirety and substituting the following new subsection (c):

"(c) A transfer under subsection (a) or (b) of this section may be made if (i) the personal representative, trustee or guardian considers the transfer to be in the best interest of the minor, which shall be presumed in the absence of contrary facts actually known to the personal representative, trustee, or guardian; (ii) the transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement or other governing instrument; and (iii) if the property exceeds $50,000 in value, the custodian designated by the personal representative, trustee or guardian is approved by the Court."

Section 5. Amend Section 4506 by adding anew subsection (d) to read as follows:

"() If a transfer is made in conformity with the preceding provisions of this
section and § 4509 of this title, the personal representative, trustee or guardian making the transfer shall have no liability to the minor therefor, including any obligation to see to the application of the proceeds of such transfer."

Section 6. Amend subsection (a) of subsection 4507 by deleting the word "conservator" and substituting therefor the word "guardian".

Section 7. Amend subsection (c) of Section 4507 by deleting the words "exceeds 10,000 in value" and inserting in lieu thereof the words "$50,000 in value or, if the property exceeds $50,000 in value, the custodian designated by the transferor is approved by the Court."

Section 8. Amend section 4507 by adding a new subsection (d) to read as follows:

"(d) A transfer under subsection (a) may be made (i) if the transferor considers the transfer to be in the best interest of the minor, which shall be presumed in the absence of contrary facts actually known to the transferor; and (ii) if the property exceeds $50,000 in value, the custodian designated by the transferor is approved by the Court. If a transfer is made in conformity with the preceding provisions of this section and § 4509 of this title, the transferor shall have no liability to the minor therefor, including any obligation to see to the application of the proceeds of such transfer."

Section 9. Amend subsection (d) of Section 4518 by deleting the word "conservator" each place it appears and substituting therefor the word "guardian."

Section 10. Amend subsection (f) of Section 4518 by deleting the word "conservator" and substituting therefor the word "guardian."

Section 11. The changes made by this act shall be effective for transfers made on or after the date of enactment.

Approved July 16, 1997