(1) Unless a person required to transfer funds or other property to a minor knows that a conservator for the minor has been appointed or a proceeding is pending for conservatorship, the person may transfer an amount or value not exceeding Twenty-five Thousand Dollars ($25,000.00) in a twelve-month period to:
(a) A person who has care or custody of the minor and with whom the minor resides;
(b) A guardian for the minor;
(c) A custodian under the Uniform Transfers to Minors Act, Section 91-20-1 et seq.; or
(d) 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
(e) An Achieving a Better Life Experience (ABLE) account.
(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).
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