UNDERWRITING Q&A: I have a transaction where the parties intend to put title to the property in the names of minor children. Will this require a conservatorship proceeding? (CO)

A.  No.  Title can be vested in an adult age 21 or older as custodian for minor children under the Colorado Uniform Transfers to Minors Act without the necessity for a conservatorship proceeding for the minor children.  The grantee clause in the deed must state exactly that.  For example, the grantee clause should state “John Smith as custodian for (name of minor children) under the Colorado Uniform Transfers to Minors Act.”  The custodian does not need to be appointed in a separate document.  The naming of the custodian in the deed acts as the custodian’s legal appointment.  If title to a property has been vested correctly under the Colorado Uniform Transfers to Minors Act it may be conveyed out in a deed using the same language in the grantor clause.       

As always, feel free to reach out to your FNTI underwriting counsel for questions involving title vesting issues.