(1) Unless a person required to transfer money or personal property to a minor knows that a conservator has been appointed or that a proceeding for appointment of a conservator of the estate of the minor is pending, the person may do so, as to an amount or value not exceeding ten thousand dollars a year or the then current annual gift tax exclusion as stated in the internal revenue code, whichever is greater, by transferring it to:
(a) A person who has the care and custody of the minor and with whom the minor resides;
(b) A guardian of the minor;
(c) A custodian under the “Colorado Uniform Transfers to Minors Act”, article 50 of title 11, C.R.S., or a custodial trustee under the “Colorado Uniform Custodial Trust Act”, article 1.5 of this title; or
(d) A financial institution as a deposit in an interest-bearing account or certificate in the sole name of the minor and giving notice of the deposit to the minor.
(2) A person who transfers money or property in compliance with this section is not responsible for its proper application.
(3) A guardian or other person who receives money or property for a minor under paragraph (a) of subsection (1) of this section or subsection (2) of this section may only apply it to the support, care, education, health, and welfare of the minor, and may not derive a personal financial benefit except for reimbursement for necessary expenses. Any excess must be preserved for the future support, care, education, health, and welfare of the minor, and any balance must be transferred to the minor upon emancipation or attaining majority with an accounting of all income and disbursements.
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