SUBCHAPTER IV-GIFTS 651. Definition of gift. 655. Gift presumed to be in view of death. 657. Effect of will upon gift. 658. Gift treated as legacy. SUBCHAPTER V-GIFTS TO MINORS 681. Definitions. 682. Manner of making gift. 683. Effect of gift. 684. Duties and powers of custodian. 685. Custodian's expenses, compensation, bond, and liabilities. 686. Exemption of third persons from liability. 687. Resignation, death, or removal of custodian; bond; appointment of successor custodian. 688. Accounting by custodian. 689. Construction. 690. Short title. Subchapter I-General Provisions § 571. Definitions Transfer is an act of the parties, or of the law, by which the title to property is conveyed from one living person to another. A voluntary transfer is an executed contract, and, except that a consideration is not necessary to its validity, is subject to all rules of law concerning contracts in general. A transfer in writing is called a grant or bill of sale, and, as used in this chapter, "grant" includes both these instruments. § 572. Property which may be transferred Except as provided by section 573 of this title, property of any kind may be transferred. § 573. Possibility as transferable A mere possibility, not coupled with an interest, may not be transferred. § 574. Right of repossession as transferable A right of repossession for breach of condition subsequent may be transferred. § 575. Vesting of title A transfer vests in the transferee all the actual title to the thing transferred which the transferor then has, unless a different intention is expressed or necessarily implied. § 576. Incidents to a thing transferred The transfer of a thing transfers also all its incidents, unless expressly excepted; but the transfer of an incident to a thing does not transfer the thing itself. Subchapter II-Mode of Transfer § 591. Oral transfer If a writing is not expressly required by statute, a transfer may be made without writing. 592. Interest in an existing trust An interest in an existing trust may be transferred only by operation of law, or by a written instrument, subscribed by the person making the transfer, or by his agent. § 593. Transfer of other personal property by sale The mode of transferring other personal property by sale is regulated by chapter 45 of this title. 8594. Necessity for delivery A grant takes effect, so as to vest the interest intended to be transferred, only upon its delivery by the grantor. § 595. Date of delivery A grant duly executed is presumed to have been delivered at its date. § 596. Delivery as necessarily absolute A grant cannot be delivered conditionally to the grantee. Delivery to him, or to his agent, as such, is necessarily absolute, and the instrument takes effect thereupon, discharged of any condition on which the delivery was made. § 597. Delivery in escrow A grant may be deposited by the grantor with a third person, to be delivered on performance of a condition, and, on delivery by the depositary, it will take effect. While in the possession of the third person, and subject to condition, it is an escrow. § 598. Constructive delivery Though a grant is not actually delivered into the possession of the grantee, it is constructively delivered where it is: (1) by the agreement of the parties at the time of execution, understood to be delivered, and under such circumstances that the grantee is entitled to immediate delivery; or (2) delivered to a stranger for the benefit of the grantee, and his assent is shown, or may be presumed. Subchapter III-Interpretation of Grants § 621. Interpretation as contracts Except as otherwise provided in this subchapter, grants shall be interpreted in like manner as contracts in general. § 622. Limitation in grant A clear and distinct limitation in a grant is not controlled by other words less clear and distinct. 8 623. Recourse to recitals If the operative words of a grant are doubtful, recourse may be had to its recitals to assist the construction. § 624. Interpretation against grantor; exceptions (a) Except as provided by subsection (b) of this section, a grant shall be interpreted in favor of the grantee. (b) A reservation in a grant, and a grant by a public officer or body, as such, to a private party, shall be interpreted in favor of the grantor. § 625. Irreconcilable provisions If several parts of a grant are absolutely irreconcilable, the former part prevails. § 626. "Heirs” and “issue” in certain remainders Where a future interest is limited by a grant to take effect on the death of any person without heirs, or heirs of his body, or without issue, or in equivalent words, those words mean successors, or issue living at the death of the person named as ancestor. Subchapter IV-Gifts § 651. Definition of gift A gift is a transfer of personal property, made voluntarily, and without consideration. § 652. Requisites of a gift A verbal gift is not valid unless: (1) the means of obtaining possession and control of the thing are given; or (2) if the thing is capable of being delivered, there is actual or symbolical delivery thereof to the donee. § 653. Revocability of gifts A gift, other than a gift in view of death, cannot be revoked by the giver. 8654. Gift in view of death A gift in view of death is one made in contemplation, fear, or peril of death, with intent that it shall take effect only in case of the death of the giver. 8655. Gift presumed to be in view of death A gift made during the last illness of the giver, or under circumstances which would naturally impress him with an expectation of speedy death, is presumed to be a gift in view of death. § 656. Revocation of gift in view of death (a) Except as provided by subsection (b) of this section, a gift in view of death may be revoked by the giver at any time, and is revoked by: (1) the giver's recovery from his illness, or escape from the peril, under the presence of which the gift was made; or (2) the occurrence of an event which would operate as a revocation of a will made at the same time. (b) When a gift in view of death has been delivered to the donee, the rights of a bona fide purchaser from the donee before a revocation of the gift are not affected by the revocation. 8657. Effect of will upon gift A gift in view of death is not affected by a previous will; nor by a subsequent will, unless it expresses an intention to revoke the gift. 8 658. Gift treated as legacy A gift in view of death is treated as a legacy, as far as relates only to the creditors of the giver. Subchapter V-Gifts to Minors § 681. Definitions In this subchapter, unless the context otherwise requires: "adult" means a person who has attained the age of 21 years; "bank" means a bank, trust company, national banking association, or savings bank; "broker” means a person lawfully engaged in the business of effecting transactions in securities for the account of others; and the term includes a bank which effects such transactions; and term also includes a person lawfully engaged in buying and selling securities for his own account, through a broker or otherwise, as part of a regular business; "court" means the United States District Court for the District of the Canal Zone; "custodial property" includes: (1) all securities and money under the supervision of the same custodian for the same minor as a consequence of a gift or gifts made to the minor in a manner prescribed in this subchapter: (2) the income from the custodial property; and (3) the proceeds, immediate and remote, from the sale, exchange, conversion, investment, reinvestment or other disposition of such securities, money and income; "custodian" is a person so designated in a manner prescribed in this subchapter; "guardian" of a minor includes the general guardian, guardian, tutor or curator of his property, estate or person; "issuer" means a person who places or authorizes the placing of his name on a security (other than as a transfer agent) to evidence that it represents a share, participation or other interest in his property or in an enterprise or to evidence his duty or undertaking to perform an obligation evidenced by the security, or who becomes responsible for or in place of any such person; "legal representative" of a person means his executor or the administrator, general guardian, guardian, committee, conservator, tutor or curator of his property or estate; "member" of a "minor's family" means any of the minor's parents, grandparents, brothers, sisters, uncles and aunts, whether of the whole blood or the half blood, or by or through legal adoption; "minor" means a person who has not attained the age of 21 years. "security" includes any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in an oil, gas or mining title or lease or in payments out of production under such a title or lease, collateral trust certificate, transferable share, voting trust certificate or, in general, any interest or instrument commonly known as a security, or any certificate of interest. or participation in, any temporary or interim certificate, receipt or certificate of deposit for, or any warrant or right to subscribe to or purchase, any of the foregoing; but the term does not include a security of which the donor is the issuer; and a security is in "registered form" when it specifies a person entitled to it or to the rights it evidences and its transfer may be registered upon books maintained for that purpose by or on behalf of the issuer; "transfer agent" means a person who acts an authenticating trustee transfer agent, registrar or other agent for an issuer in the registration of transfers of its securities or in the issue of new securities or in the cancellation of surrendered securities; "trust company" means a corporation or association authorized to exercise trust powers. § 682. Manner of making gift (a) An adult person may, during his lifetime, make a gift of a security or money to a person who is a minor on the date of the gift: (1) if the subject of the gift is a security in registered form, by registering it in the name of the donor, another adult person or a trust company, followed, in substance, by the words: "as custodian for.. under the Canal (name of minor) Zone Uniform Gifts to Minors Act"; (2) if the subject of the gift is a security not in registered form, by delivering it to an adult person other than the donor, or a trust company, accompanied by a statement of gift in the following form, in substance, signed by the donor and the person designated as custodian: (name of minor) Minors Act, the following security (ies): (insert an appropriate description of the security or securities delivered sufficient to identify it or them) (signature of donor) hereby acknowledges receipt of the above described (name of custodian) security (ies) as custodian for the above minor under the Canal Zone Uniform Gifts to Minors Act. Dated:------ (signature of custodian)" (3) If the subject of the gift is money, by paying or delivering it to a broker or a bank for credit to an account (or to a savings and loan association for investment in an account in an insured savings and loan association) in the name of the donor, another adult person, or a bank with trust powers, followed, in substance, by the words: "as custodian for -- (name of minor) under the Canal Zone Uniform Gifts to Minors Act". (b) A gift made in a manner prescribed by subsection (a) of this section may be made to only one minor and only one person may be the custodian. (c) A donor who makes a gift to a minor in a manner prescribed by subsection (a) of this section shall promptly do all things within his power to put the subject of the gift in the possession and control of the custodian, but neither the donor's failure to comply with this subsection, nor his designation of an ineligible person as custodian, nor renunciation by the person designated as custodian affects the consummation of the gift. § 683. Effect of gift (a) A gift made in a manner prescribed in this subchapter is irrevocable and conveys to the minor inde feasibly vested legal title to the security or money given, but a guardian of the minor does not have any right, power, duty or authority with respect to the custodial property except as provided by this subchapter. (b) By making a gift in a manner prescribed by this subchapter, the donor incorporates in his gift all the provisions of this subchapter and grants to the custodian, and to any issuer, transfer agent, bank, savings and loan association, broker or third person dealing with a person designated as custodian, the respective powers, rights and immunities provided in this subchapter. § 684. Duties and powers of custodian (a) A custodian shall collect, hold, manage, invest and reinvest the custodial property. (b) A custodian shall pay over to the minor for expenditure by him, or expend for the minor's benefit, so much of or all the custodial property as the custodian deems advisable for the support, maintenance, education and benefit of the minor in the manner, at the time or times, and to the extent that the custodian in his discretion deems suitable and proper, with or without court order, with or without regard to the duty of himself or of any other person to support the minor or his ability to do so, and with or without regard to any other income or property of the minor which may be applicable or available for any such purpose. |