Citation Numbers: 11 Misc. 2d 277
Judges: Saypol
Filed Date: 11/12/1957
Status: Precedential
Modified Date: 2/5/2022
The petitioner makes application for an order, ex parte, granting leave to him to resign as custodián for his minor children and appointing his wife as successor custodian. Starting in 1956, pursuant to article 8-A of the Personal Property Law, he made gifts of securities to his children which he caused to be registered in his name as custodian. The reason for the change of trustees is a U. S. Treasury ruling (Internal Revenue Bulletin, No. 1957-32, Rev. Rul. 57-366) making the corpus .taxable to the donor’s estate upon his death before the minor’s majority.
Article 8-A (§§ 265 to 270) of the Personal Property Law was added by chapter 35 of the Laws of 1956, effective March 2, 1956. The object was to facilitate gifts of securities to minors by transferring them to a custodian for the minor. While subdivision 1 of section 266 provides that such a custodian holds a power in trust, the whole statutory innovation suggests
The denomination of the office of custodian as a personal trust with the duties of a guardian of the property of an infant (Personal Property Law, § 266, subd. 1) requires legal representation of the infant (Civ. Prac. Act, § 207) in an accounting proceeding (Personal Property Law, § 268, subd. 2) following the procedure dictated by article 79 of the Civil Practice Act.
Let an order to show cause with provision for designation of a person to represent the infants be submitted.