Utah Code 75-5a-113. Care of custodial property
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(1) A custodian shall:
Terms Used In Utah Code 75-5a-113
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Estate: includes the property of the decedent, trust, or other person whose affairs are subject to this title as originally constituted and as it exists from time to time during administration. See Utah Code 75-1-201 v2
- Minor: means a person who is under 18 years old. See Utah Code 75-1-201 v2
- Parent: includes any person entitled to take, or who would be entitled to take if the child died without a will, as a parent under this title by intestate succession from the child whose relationship is in question. See Utah Code 75-1-201 v2
- Person: means an individual or an organization. See Utah Code 75-1-201 v2
- Property: includes both real and personal property or any interest therein and means anything that may be the subject of ownership. See Utah Code 75-1-201 v2
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Utah Code 75-1-201 v2
- Statute: A law passed by a legislature.
(1)(a) take control of custodial property;
(1)(b) register or record title to custodial property if appropriate; and
(1)(c) collect, hold, manage, invest, and reinvest custodial property.
(2) In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries. If a custodian has a special skill or expertise or is named custodian on the basis of representations of a special skill or expertise, the custodian shall use the skill or expertise. However, a custodian may, in his discretion and without liability to 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 policies on:
(3)(a) the life of the minor only if the minor or the minor’s estate is the sole beneficiary; or
(3)(b) the life of another person in whom the minor has an insurable interest only to the extent the minor, the minor’s estate, or the custodian in the capacity of custodian, is the irrevocable beneficiary.
(4)
(4)(a) A custodian shall at all times keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor.
(4)(b) Custodial property consisting of an undivided interest is so identified if the minor’s interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is either registered, or held in an account designated, in the name of the custodian, followed in substance by the words: “as a custodian for …………… (name of minor) under the Uniform Transfers 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 make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor is 14 years of age or older.