75-5a-113 - Care of custodial property. - Utah Statutes

75-5a-113. Care of custodial property.
(1) A custodian shall:
(a) take control of custodial property;
(b) register or record title to custodial property if appropriate; and
(c) collect, hold, manage, invest, and reinvest custodial property.
(2) In dealing with custodial property, a custodian shall observe the standard of care thatwould be observed by a prudent person dealing with property of another and is not limited by anyother statute restricting investments by fiduciaries. If a custodian has a special skill or expertiseor is named custodian on the basis of representations of a special skill or expertise, the custodianshall use the skill or expertise. However, a custodian may, in his discretion and without liabilityto the minor or the minor's estate, retain any custodial property received from a transferor.
(3) A custodian may invest in or pay premiums on life insurance or endowment policieson:
(a) the life of the minor only if the minor or the minor's estate is the sole beneficiary; or
(b) the life of another person in whom the minor has an insurable interest only to theextent the minor, the minor's estate, or the custodian in the capacity of custodian, is theirrevocable beneficiary.
(4) (a) A custodian shall at all times keep custodial property separate and distinct from allother property in a manner sufficient to identify it clearly as custodial property of the minor.
(b) Custodial property consisting of an undivided interest is so identified if the minor'sinterest is held as a tenant in common and is fixed. Custodial property subject to recordation is soidentified if it is recorded, and custodial property subject to registration is so identified if it iseither registered, or held in an account designated, in the name of the custodian, followed insubstance by the words: "as a custodian for ............... (name of minor) under the UniformTransfers to Minors Act."
(5) A custodian shall keep records of all transactions with respect to custodial property,including information necessary for the preparation of the minor's tax returns, and shall makethem available for inspection at reasonable intervals by a parent or legal representative of theminor or by the minor if the minor is 14 years of age or older.

Enacted by Chapter 272, 1990 General Session