Custodial independent retirement accounts

1. As used in this section, unless the context otherwise requires: a. “Custodial independent retirement account” means an individual retirement account in accordance with section 408(a) of the Internal Revenue Code or a Roth individual retirement account in accordance with section 408A of the Internal Revenue Code, the assets of which are not held in trust. b. “Designator” means a person entitled to designate the beneficiary or beneficiaries of a custodial independent retirement account. 2. The assets of a custodial independent retirement account shall pass on or after the death of the designator of the custodial independent retirement account to the beneficiary or beneficiaries specified in the custodial independent retirement account agreement signed by the designator or designated by the designator in writing pursuant to the custodial independent retirement account agreement. Assets that pass to a beneficiary pursuant to this section shall not be considered part of the designator’s probate estate except to the extent that the designator’s estate is a beneficiary. The designation of a beneficiary shall not be considered testamentary and does not have to be witnessed. 3. This section applies to a custodial independent retirement account established and a beneficiary designation made prior to, on, or after July 1, 1999. This section shall be considered to be declarative of the law as the law existed immediately prior to July 1, 1999. 4. This section shall not be construed to imply that assets or benefits that are payable upon the death of a person to a beneficiary or beneficiaries designated in or pursuant to a written arrangement not described in this section, other than a will, are part of the person’s probate estate or that the arrangement is testamentary.