Arizona Laws 14-7662. Care of custodial property; duties of custodian
A. A custodian shall:
Terms Used In Arizona Laws 14-7662
- Beneficiary: means an individual for whom property has been transferred to, or held under a declaration of trust by, a custodial trustee for the individual's use and benefit under this chapter. See Arizona Laws 14-9101
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Custodial property: means an interest in property that is transferred to a custodian pursuant to this article and income from and proceeds of that interest in property. See Arizona Laws 14-7651
- Custodian: means a person designated pursuant to section 14-7659 or a successor or substitute custodian designated pursuant to section 14-7668. See Arizona Laws 14-7651
- Estate: includes the property of the decedent, trust or other person whose affairs are subject to this title as originally constituted and as it exists from time to time during administration. See Arizona Laws 14-1201
- Financial institution: means a bank, trust company, savings institution or credit union, which is chartered and supervised under state or federal law. See Arizona Laws 14-7651
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Legal representative: means an individual's personal representative or conservator. See Arizona Laws 14-7651
- Minor: means a person under the age of twenty-one years. See Arizona Laws 14-7651
- Parent: includes any person entitled to take, or who would be entitled to take if the child died without a will, as a parent under this title by intestate succession from the child whose relationship is in question and excludes any person who is only a stepparent, foster parent or grandparent. See Arizona Laws 14-1201
- Person: means an individual, corporation, organization or other legal entity. See Arizona Laws 14-7651
- Property: includes both real and personal property. See Arizona Laws 1-215
- Statute: A law passed by a legislature.
- Street name or nominee name: means registration used by a broker or financial institution for holding securities if they are not registered in the name of the beneficial owner. See Arizona Laws 14-7651
- Transferor: means a person who makes a transfer pursuant to this article. See Arizona Laws 14-7651
1. Take control of custodial property.
2. Register or record title to custodial property if appropriate.
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 either the life of the minor if the minor or the minor’s estate is the sole beneficiary or 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 certificated securities may be held on deposit at a stock brokerage firm or a financial institution registered in a street name or nominee name. 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 either by registration or 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 Arizona uniform transfers to minors act".
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 is at least fourteen years of age.