§ 18-7-13. Care of custodial property.
(a) A custodian shall:
(1) Take control of custodial property;
(2) Register or record title to custodial property if appropriate; and
(3) Collect, hold, manage, invest, and reinvest custodial property.
(b) 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.
(c) A custodian may invest in or pay premiums on life insurance or endowment policies
on:
(1) The life of the minor only if the minor or the minor's estate is the sole beneficiary;
or
(2) 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.
(d) 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 Rhode Island Uniform
Transfers to Minors Act, chapter 7 of title 18�.
(e) 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 (14) years.