§ 13-312. Care of custodial property

West's Annotated Code of MarylandEstates and TrustsEffective: October 1, 2012

West's Annotated Code of Maryland
Estates and Trusts (Refs & Annos)
Title 13. Protection of Minors, Disabled Persons, Susceptible Adults, and Older Adults (Refs & Annos)
Subtitle 3. Maryland Uniform Transfers to Minors Act (Refs & Annos)
Effective: October 1, 2012
MD Code, Estates and Trusts, § 13-312
§ 13-312. Care of custodial property
Currentness
Duties of custodian
(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.
Care of custodial property
(b)(1) Except as provided in paragraph (2) of this subsection, in dealing with custodial property:
(i) 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;
(ii) 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; and
(iii) 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.
(2) A fiduciary subject to § 15-114 of this article shall comply with that section in dealing with custodial property.
Life insurance or endowment policies
(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.
Custodial property separate and distinct from other property
(d)(1) 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.
(2) 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.
(3) 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 Maryland Uniform Transfers to Minors Act”.
Recordkeeping requirements
(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 14 years.

Credits

Added by Acts 1989, c. 638, § 1, eff. July 1, 1989. Amended by Acts 1994, c. 602, § 1, eff. Oct. 1, 1994; Acts 2012, c. 68, § 1, eff. Oct. 1, 2012; Acts 2012, c. 69, § 1, eff. Oct. 1, 2012.
MD Code, Estates and Trusts, § 13-312, MD EST & TRST § 13-312
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document