§ 11-50-113 — Care of custodial property

Colorado § 11-50-113

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Colorado Uniform Transfers to Minors Act

Text

(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 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 any custodial
property received from a transferor.

(3) A custodian may invest in or pay premiums on life insurance or
endowment policies on:

(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 the extent that the minor, the minor's estate, or the custodian in the
capacity of custodian is the irrevocable beneficiary.

(4) A custodian at all times shall keep custodial property separate and
distinct from all other property in a manner sufficient to identify it clearly as
custodial property of the minor. 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 'Colorado 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 has attained the age of fourteen years.

Legislative History

Source: L. 84: Entire article R&RE, p. 388, � 1, effective July 1.