§ 18-13-7. General duties of custodial trustee.
(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 the property of another and
is not limited by any other law restricting investments by fiduciaries. However, a
custodial trustee, at 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) of this section, a custodial trustee shall take control
of and collect, hold, manage, invest, and reinvest custodial trust property.
(d) A custodial trustee shall keep at all times 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 as custodial trust property is recorded, and custodial
trust property subject to registration is so 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 Rhode Island 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.