Section 93-20-431 - Transfer for benefit of minor without appointment of conservator(1) Unless a person required to transfer a liquidated sum certain under a banking provision, a contract for payment or under a judgment or decree of a court, or other property to a minor knows that a conservator for the minor has been appointed or a proceeding is pending for conservatorship: (a) The person may transfer a liquidated sum certain or property of certain value not exceeding Twenty-five Thousand Dollars ($25,000.00) in a twelve-month period to: (i) A person who has care or custody of the minor and with whom the minor resides;(ii) A guardian for the minor;(iii) A custodian under the Uniform Transfers to Minors Act, Section 91-20-1 et seq.; or(iv) A financial institution as a deposit in an account or certificate solely in the name of the minor; notice of the deposit must be given to the minor; or(v) An Achieving a Better Life Experience (ABLE) account.(b) The person must seek chancery court approval if the sum of money or value of property that may be due to the ward is not a liquidated sum certain or property of certain value under a banking provision, a contract for payment, or under a judgment, order or decree of a court, and the chancery court before ordering the money paid or personal property delivered must fully investigate the matter and satisfy itself by evidence or otherwise that the proposed sum of money to be paid or property to be delivered because of any claim of the ward whatsoever, whether arising ex delicto or ex contractu, is a fair settlement of the claim of the ward and that it is in the best interest of the ward that the settlement be made or the personal property be delivered to the ward. Upon making that determination, the chancery court may order that the money or personal property be accepted by the ward and paid or delivered by the party owing the money or in possession of the property as authorized by the decree of the court, and compliance with the order shall acquit and release the person so paying or delivering the same. The person who receives the money or property of a ward under the order thereby becomes amenable to the court for the disposition of it for the use and benefit of the ward, but is not required to furnish security therefor absent order of the chancery court.(2) A person that transfers funds or other property under this section is not responsible for its proper application.(3) A person that receives funds or other property for a minor under subsection (1)(a) or (b) may apply it only to the support, care, education, health, or welfare of the minor, and may not derive a personal financial benefit from it, except for reimbursement for necessary expenses. Funds not applied for these purposes must be preserved for the future support, care, education, health, or welfare of the minor, and the balance, if any, transferred to the minor when the minor becomes an adult or otherwise is emancipated.(4) Contributions to an ABLE account, and the provisions for permissible disbursements from such account, are governed by 26 U.S.C. Section 529A and the terms of the applicable ABLE plan. The amount of annual contributions is subject to 26 U.S.C. Section 2503(b).Amended by Laws, 2020, ch. 344, SB 2874,§ 28, eff. 6/23/2020.Added by Laws, 2019, ch. 463, SB 2828,§ 1, eff. 1/1/2020.