§ 7-6.12 Care of custodial property\n (a) A custodian shall:\n (1) take control of custodial property;\n (2) register or record title to custodial property if appropriate; and\n (3) collect, hold, manage, invest, and reinvest custodial property.\n (b) In dealing with custodial property, a custodian shall observe the\nstandard of care that would be observed by a prudent person dealing with\nproperty of another and is not limited by any other statute restricting\ninvestments by fiduciaries and is specifically authorized to delegate\ninvestment and management functions in the manner of a trustee as\nprovided in section 11-2.3. If a custodian has a special skill or\nexpertise or is named custodian on the basis of representations of a\nspecial skill or expertise, the custodian shall use that skill or\nexpertise. However, a custodian, in the custodian's discretion and\nwithout liability to the minor or the minor's estate, may retain any\ncustodial property received from a transferor.\n (c) A custodian may invest in or pay premiums on life insurance or\nendowment policies on (1) the life of the minor only if the minor or the\nminor's estate is the sole beneficiary, or (2) the life of another\nperson in whom the minor has an insurable interest only to the extent\nthat the minor, the minor's estate, or the custodian in the capacity of\ncustodian, is the irrevocable beneficiary.\n (d) A custodian at all times shall keep custodial property separate\nand distinct from all other property in a manner sufficient to identify\nit clearly as custodial property of the minor. Custodial property\nconsisting of certificated securities may be held on deposit at a stock\nbrokerage firm or a financial institution registered in a street name or\nnominee name. Custodial property consisting of an undivided interest is\nso identified if the minor's interest is held as a tenant in common and\nis fixed. Custodial property subject to recordation is so identified if\nit is recorded, and custodial property subject to registration is so\nidentified if it is either registered, or held in an account designated,\nin the name of the custodian, followed in substance by the words: "as a\ncustodian for_______________(name of minor) under the New York Uniform\nTransfers to Minors Act."\n (e) A custodian shall keep records of all transactions with respect to\ncustodial property, including information necessary for the preparation\nof the minor's tax returns, and shall make them available for inspection\nat reasonable intervals by a parent or legal representative of the minor\nor by the minor if the minor has attained the age of fourteen years.\n
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.