Description of SB 887

Gifts to Old TUGMA Accounts

Governor Bush signed SB 887 on May 23, 1997. SB 887 becomes effective September 1, 1997.

SB 887 amends the Texas Uniform Transfers to Minors Act (which was enacted in 1995) by adding Section 25 to such act to read as follows:

Sec. 25. ADDITIONAL TRANSFERS TO CUSTODIANSHIPS IN EXISTENCE BEFORE EFFECTIVE DATE OF ACT. (a) This section applies only to a transfer within the scope of Section 3 made after September 1, 1995, to a custodian of a custodianship established before September 1, 1995, under the Texas Uniform Gifts to Minors Act.

(b) This chapter does not prevent a person from making additional transfers to a custodianship described by Subsection (a). On the direction of the transferor or custodian, custodial property that is transferred to the custodianship shall be commingled with the custodial property of the custodianship established under the Texas Uniform Gifts to Minors Act. The additional transfers to the custodianship shall be administered and distributed on termination of the custodianship, as prescribed by this chapter, except that for purposes of Section 21, the custodian shall transfer the custodial property to:

(1) the beneficiary on the date the beneficiary attains 18 years of age or an earlier date as prescribed by Section 21; or

(2) the beneficiary's estate if the individual dies before the date prescribed by Subdivision (1).

SB 887 takes effect on September 1, 1997, but it applies to all transfers to old TUGMA accounts made on or after September 1, 1995 -- the effective date of the Uniform Transfers to Minors Act.


Copyright 1997 by Glenn M. Karisch. This page was last revised on May 28, 1997.