1. (a) A person may create a custodial trust of property by a written transfer of the property to another person, evidenced by registration of the property or by an instrument of transfer that:

   1. (1) is executed in any lawful manner;
   2. (2) names an individual as beneficiary who may be the transferor; and
   3. (3) in substance, designates the transferee to be the custodial trustee of the property under this chapter.

2. (b) A person may create a custodial trust of property by a written declaration evidenced by registration of the property or by another instrument of declaration that:

   1. (1) is executed in any lawful manner;
   2. (2) describes the property;
   3. (3) names as beneficiary an individual other than the declarant; and
   4. (4) in substance, designates the declarant, who is also the titleholder of the property, to be the custodial trustee of the property under this chapter.
3. (c) A registration or other declaration of trust for the sole benefit of the declarant is not a custodial trust under this chapter.
4. (d) Title to custodial trust property is in the custodial trustee and the beneficial interest is in the beneficiary.

As added by P.L.3-2003, SEC.1.