§ 633F.7 — General duties of custodial trustee

Iowa § 633F.7

• Jurisdiction: Iowa
• Title XV: JUDICIAL BRANCH AND JUDICIAL PROCEDURES
• Ch. 633F: IOWA UNIFORM CUSTODIAL TRUST ACT

Text

1. If appropriate, a custodial trustee shall register or record the instrument vesting title to
custodial trust property.
2. 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 prudent investment standards set forth
in section 633.123. 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.
3. Subject to subsection 2, a custodial trustee shall take control of and collect, hold,
manage, invest, and reinvest custodial trust property.
4. 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 so identifying the
property is recorded, and custodial trust property subject to registration is so identified if it is
registered, orheldinanaccountinthenameofthecustodialtrustee, designatedinsubstance:
“as custodial trustee for __________________ (name of beneficiary)
under the Iowa Uniform Custodial Trust Act”.
5. 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.
6. 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.