Custodial trustee's powers and duties
Sec. 27. (a) If appropriate, a custodial trustee shall register or
record the instrument vesting title to custodial trust property.
(b) If the beneficiary is not incapacitated, a custodial trustee shall
follow the directions of the beneficiary in the management, control,
investment, or retention of the custodial trust property. In the absence
of effective contrary direction by the beneficiary while not
incapacitated, the custodial trustee 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 law restricting investments by
fiduciaries. However, a custodial trustee, in the custodial trustee's
discretion, may retain any custodial trust property received from the
transferor. If a custodial trustee has a special skill or expertise or is
named custodial trustee on the basis of representation of a special
skill or expertise, the custodial trustee shall use that skill or
expertise.
(c) Subject to subsection (b), a custodial trustee shall take control
of and collect, hold, manage, invest, and reinvest custodial trust
property.
(d) A custodial trustee at all times shall keep custodial trust
property of which the custodial trustee has control separate from all
other property in a manner sufficient to identify it clearly as custodial
trust property of the beneficiary. Custodial trust property, the title to
which is subject to recordation, is so identified if an appropriate
instrument identifying the property is recorded, and custodial trust
property subject to registration is identified if it is registered, or held
in an account in the name of the custodial trustee, designated in
substance: "as custodial trustee for _______________ (name of
beneficiary) under the Indiana uniform custodial trust act".
(e) A custodial trustee shall keep records of all transactions with
respect to custodial trust property, including information necessary
for the preparation of tax returns, and shall make the records and
information available at reasonable times to the beneficiary or legal
representative of the beneficiary.
(f) The exercise of a durable power of attorney for an
incapacitated beneficiary is not effective to terminate or direct the
administration or distribution of a custodial trust.
As added by P.L.3-2003, SEC.1.
Last modified: May 27, 2006