1. (a) A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to:

   1. (1) the duty or ability of the custodian personally or of any other person to support the minor; or
   2. (2) any other income or property of the minor that may be applicable or available for the support of the minor.

2. (b) At any time and without a court order, a custodian may transfer part or all of the custodial property to:

   1. (1) a trust, including a trust created by the custodian, in which:

      1. (A) the minor is the sole beneficiary of the trust; and
      2. (B) the terms of the trust satisfy the requirements of Section 2503(c) of the Internal Revenue Code and the regulations under that section;

   2. (2) an account, including an account created by the custodian, in which:

      1. (A) the minor is the sole beneficiary of the account; and

      2. (B) the terms of the account satisfy the requirements of:

         1. (i) Section 529 of the Internal Revenue Code; or
         2. (ii) IC 21-9 (education savings programs);

   3. (3) a qualified disability trust, including a qualified disability trust created by the custodian, in which:

      1. (A) the minor, who has been determined to have a qualifying disability, is the sole beneficiary of the qualified disability trust; and
      2. (B) the terms of the qualified disability trust satisfy the requirements of Section 642(b)(2)(C)(ii) of the Internal Revenue Code;

   4. (4) an account established within a pooled trust managed by a nonprofit organization in which:

      1. (A) the minor, who has been determined to have a qualifying disability, is the sole beneficiary of the account; and
      2. (B) the pooled trust satisfies the requirements of 42 U.S.C. 1396p(d)(4)(C); or

   5. (5) a qualified ABLE account, including an ABLE account created by a custodian, in which:

      1. (A) the minor is the exclusive designated beneficiary of the ABLE account; and

      2. (B) the ABLE account satisfies the requirements of:

         1. (i) Section 529A of the Internal Revenue Code; and

         2. (ii) IC 12-11-14 (Achieving a Better Life Experience (ABLE) program).

            A transfer made under this subsection terminates the custodianship of the property to the extent of the transfer.

3. (c) On petition of an interested person or the minor if the minor is at least fourteen (14) years of age, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit as much of the custodial property as the court considers advisable for the use and benefit of the minor.
4. (d) A delivery, payment, or expenditure under this section is in addition to, not in substitution for, and does not affect an obligation of a person to support the minor. A custodian may not use custodial property to satisfy any legal support obligation owed to the minor by the custodian.

As added by P.L.267-1989, SEC.2. Amended by P.L.238-2005, SEC.17; P.L.95-2007, SEC.17; P.L.105-2026, SEC.6.