§26-2A-6. Facility of payment or delivery; notice of payment.

(a) Any person under a duty to pay or deliver money or personal property to a minor may perform the duty, in amounts as provided in this subsection, by paying or delivering the money or personal property to:

(1) Any person having the care and custody of the minor and with whom the minor resides;

(2) A guardian of the minor; or

(3) The judge of probate of the county in which the minor resides, if a resident of this state, or, if a nonresident, to the judge of probate or like officer of the county in which the debtor or creditor resides.

Payments under this subsection must not exceed $5,000 if paid in a single payment, or $3,000 a year if paid in a series of payments, and payments, by any person other than a conservator or judge, must not exceed a maximum of $25,000 during the minority of the minor ward. The person obligated to make payment is discharged of that duty or obligation by making the payment or delivery and filing a notice of such payment with the probate judge of the county in which the minor resides, if a resident of this state, or, if a nonresident, with the judge of probate or like officer of the county in which the debtor or creditor resides.

(b) This section does not apply if the person making payment or delivery has actual knowledge that a conservator has been appointed or proceedings for appointment of a conservator of the estate of the minor are pending.

(c) Persons, receiving money or personal property for a minor, are obligated to apply the money to the health, support, education, or maintenance of the minor, but may not pay themselves except by way of reimbursement for out-of-pocket expenses for goods and services necessary for the minor's support. A person who receives money or personal property for a minor is obligated to preserve the money and personal property, except to the extent necessary for the health, support, education, or maintenance of the minor, and any balance not so used and any personal property received for the minor must be turned over to the minor when majority is attained. A person who pays or delivers money or property in accordance with provisions of this section is not responsible for the proper application thereof.

(Acts 1987, No. 87-590, p. 975, §1-106; Acts 1988, 1st Ex. Sess., No. 88-898, p. 455, §1.)