Marvin Mandel, Governor                          1547

(7)    If the gift is distributable by a personal representative by
will, by stating in the will that the bequest or devise is made under
the Maryland Uniform Gifts to Minors Act or by the personal repre-
sentative electing the procedures in Section 9-109 (b) of Article 93.
Unless the testator in his will designates the custodian, who shall be
an adult, a guardian of the minor or a trust company, his personal
representative shall, subject to any limitations contained within
the will, have the power to name as the custodian an adult, a guardian
of the minor or a trust company, and shall distribute the subject
of the gift by transferring it in the manner and form provided in
the preceding paragraphs of this subsection.

(8)    If the gift [is preceded by a gift in trust to some other person
or persons, by stating in the will or living trust instrument that
it is made under] is distributable by trustees under a will or a living
trust instrument, by the trustees making a transfer of the property
to a custodian, who shall hold or dispose of the property in accordance
with the provisions of the Maryland Uniform Gifts to Minors Act.
Unless the custodian, who shall be an adult, a guardian of the minor
or a trust company, is designated in the will or living trust instru-
ment, the trustee shall, subject to any limitations contained within
the will or living trust instrument, have the power to name as cus-
todian an adult, a guardian of the minor or a trust company and
shall distribute the subject of the gift by transferring it in the
manner and form provided in the preceding paragraphs of this
subsection.

501.

(a) Any person, including, but not limited to, a personal repre-
sentative or trustee, under a duty to pay or deliver money or tangible
chattels to a minor may perform such duty, in amounts or values
not exceeding $5,000 per annum, by paying or delivering the money
or chattels to the minor, if he has attained the age of 18 years or is
married, but if he has not attained the age of 18 years or is not
married, to the guardian of the minor if the person making the pay-
ment or delivery has actual knowledge that there is a guardian, and
if there be no [such] guardian (or if the payor has no such knowl-
edge), to the parent or grandparent of the minor with whom the
minor resides, and if there be none, to a financial institution incident
to a deposit in a federal or state insured savings account in the sole
name of such minor which the minor does not, without a court order,
have the power to withdraw, until he attains his majority. A payor
shall not be under any duty to inquire whether the minor has a
guardian. The persons, other than the minor or any such financial
institution receiving money or property for a minor, are obligated to
apply the money to the support and education of the minor, may
not pay themselves except by way or reimbursement for out-of-pocket
expenses for goods and services furnished by others which are neces-
sary for the minor's support. Any excess sums shall be preserved
for future support of the minor and any balance not so used and
any tangible chattels received for the minor shall be turned over
to the minor when he attains majority. Persons owing money or
property to minors who pay or deliver it in accordance with this
section shall not be responsible for the proper application thereof.
A release for any distribution under this section shall be a valid
release.