§ 18-13-7 - General duties of custodial trustee. - Rhode Island Statutes

SECTION 18-13-7

   § 18-13-7  General duties of custodialtrustee. – (a) If appropriate, a custodial trustee shall register or record the instrumentvesting title to custodial trust property.

   (b) If the beneficiary is not incapacitated, a custodialtrustee shall follow the directions of the beneficiary in the management,control, investment, or retention of the custodial trust property. In theabsence of effective contrary direction by the beneficiary while notincapacitated, the custodial trustee shall observe the standard of care thatwould be observed by a prudent person dealing with the property of another andis not limited by any other law restricting investments by fiduciaries.However, a custodial trustee, at the custodial trustee's discretion, may retainany custodial trust property received from the transferor. If a custodialtrustee has a special skill or expertise or is named custodial trustee on thebasis of representation of a special skill or expertise, the custodial trusteeshall use that skill or expertise.

   (c) Subject to subsection (b) of this section, a custodialtrustee shall take control of and collect, hold, manage, invest, and reinvestcustodial trust property.

   (d) A custodial trustee shall keep at all times custodialtrust property, of which the custodial trustee has control, separate from allother property in a manner sufficient to identify it clearly as custodial trustproperty of the beneficiary. Custodial trust property, the title to which issubject to recordation, is so identified if an appropriate instrumentidentifying the property as custodial trust property is recorded, and custodialtrust property subject to registration is so identified if it is registered, orheld in an account in the name of the custodial trustee, designated insubstance: "as custodial trustee for ]]]]]]]]]]]]]] (name of beneficiary) underthe Rhode Island Uniform Custodial Trust Act".

   (e) A custodial trustee shall keep records of alltransactions with respect to custodial trust property, including informationnecessary for the preparation of tax returns, and shall make the records andinformation available at reasonable times to the beneficiary or legalrepresentative of the beneficiary.

   (f) The exercise of a durable power of attorney for anincapacitated beneficiary is not effective to terminate or direct theadministration or distribution of a custodial trust.