HB196 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Ken Johnson
Republican
Co-Sponsor: Mike Hill
Session: Regular Session 2013
Title: Minors, Uniform Transfers to Minors Act, transfers by person obligated to minor, aggregate limit deleted, transfers to adult family members or bank under certain conditions restricted, Sec. 35-5A-8 am'd.
Summary: HB196 removes the $10,000 cap on transfers to a custodian for a minor and sets a $50,000 limit for transfers to an adult family member or bank when no custodian is available.
What This Bill Does
The bill eliminates the $10,000 aggregated limit for irrevocable transfers to a custodian for a minor under the Uniform Transfers to Minors Act. If a custodian has been nominated, transfers go to that custodian as before. If no custodian is nominated or the nominated custodian cannot serve, transfers to an adult family member or a bank/financial institution are limited to $50,000 in value. The changes apply to Section 35-5A-8 and take effect three months after passage and governor approval.

Who It Affects
Obligors (such as parents or others who owe property or a debt to a minor) can make larger transfers to a custodian without the previous $10,000 cap.
Minor-related recipients when no custodian is available (adult family members and banks/financial institutions) are subject to a $50,000 transfer limit per transfer.

Key Provisions
Delete the $10,000 aggregated limit on transfers to a custodian under 35-5A-8.
Limit transfers to adult family members or financial institutions to $50,000 when no custodian has been nominated or cannot serve.
Maintain that if a custodian has been nominated, transfers should go to that custodian.
Effective date: the act becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Banks and Banking