385.122 Care of custodial property.
372 words·~2 min read·
/ky/chapter-385/385-122A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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 Kentucky 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
(14)years.