Care of custodial property
Sec. 27. (a) A custodian shall:
(1) take control of custodial property;
(2) register or record title to custodial property if appropriate;
and
(3) collect, hold, manage, invest, and reinvest custodial
property.
(b) 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
that skill or expertise. However, a custodian in the custodian's
discretion and without liability to the minor or the minor's estate,
may retain custodial property received from a transferor.
(c) A custodian may invest in or pay premiums on life insurance
or endowment policies on:
(1) the life of the minor only if the minor or the minor's estate
is the sole beneficiary; or
(2) the life of another person in whom the minor has an
insurable interest only to the extent that the minor, the minor's
estate, or the custodian in the capacity of custodian is the
irrevocable beneficiary.
(d) A custodian at all times shall keep custodial property separate
and distinct from all other property in a manner sufficient to identify
the property clearly as custodial property of the minor. Custodial
property consisting of an undivided interest is identified if the
minor's interest is held as a tenant in common and is fixed. Custodial
property subject to recordation is identified if the property is
recorded, and custodial property subject to registration is identified
if the property is either registered or held in an account designated in
the name of the custodian, followed by the words: "as a custodian for
_______________ (name of minor) under the Indiana uniform
transfers to minors act".
(e) 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 at least
fourteen (14) years of age.
As added by P.L.267-1989, SEC.2.
Last modified: May 27, 2006