35-7-121 - Termination of custodianship.

35-7-121. Termination of custodianship.

(a)  The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of:

     (1)  The minor's attainment of twenty-one (21) years of age; provided, that this transfer can be withheld until the minor's attainment of up to twenty-five (25) years of age if the instrument so provides, and if the gift is an inter vivos gift, the instrument further expressly states that deferring termination of custodianship beyond the minor's attainment of twenty-one (21) years of age will cause the transfer to be a gift of a future interest which may have adverse federal and state gift tax consequences; or

     (2)  The minor's death.

(b)  At any time a custodian may transfer part or all of the custodial property to a qualified minor’s trust without court order. The transfer terminates the custodianship to the extent of the transfer.

[Acts 1992, ch. 664, § 1; 1995, ch. 513, § 1; 1999, ch. 491, § 8; T.C.A. § 35-7-221; Acts 2007, ch. 8, § 12.]