Guam § 12104 - Duties and Powers of Custodian.

§ 12104. Duties and Powers of Custodian.

(a) The custodian shall collect, hold, manage, invest and reinvest the

custodian property.

(b) The custodian shall pay over to the minor for expenditure by him,

or expend for the minor=s benefit, so much of or all the custodial property as

the custodian deems advisable for the support, maintenance, education and

benefit of the minor in the manner, at the time or times, and to the extent

that the custodian in his discretion deems suitable and proper, with or

without court order, with or without regard to the duty of himself or of any

other person to support the minor or his ability to do so, and with or without

regard to any other income or property of the minor which may be

applicable or available for any such purpose.

COL120106

(c) The court, on the petition of a parent or guardian of the minor or of

the minor if he has attained the age of fourteen years may order the

custodian to pay over to the minor for expenditure by him or to expend so

much of or all the custodial property as is necessary for the minor=s support,

maintenance or education.

(d) To the extent that the custodial property is not so expended, the

custodian shall deliver or pay it over to the minor on his attaining the age of

eighteen years or, if the minor dies before attaining the age of eighteen

years, he shall thereupon deliver or pay it over to the estate of the minor.

(e) The custodian, notwithstanding statutes restricting investments by

fiduciaries, shall invest and reinvest the custodial property as would a

prudent man of discretion and intelligence who is seeking a reasonable

income and the preservation of his capital, except that he may, in his

discretion and without liability to the minor or his estate, retain a security

given to the minor in a manner prescribed in this Chapter or hold money so

given in an account in the financial institution to which it was paid or

delivered by the donor.

(f) The custodian may sell, exchange, convert, surrender or otherwise

dispose of custodial property in the manner, at the time or times, for the

price or prices and upon the terms he deems advisable. He may vote in

person or by general or limited proxy a security which is custodial property.

He may consent, directly or through a committee or other agents, to the

reorganization, consolidation, merger, dissolution or liquidation of an issuer,

a security which is custodial property, and to the sale, lease, pledge or

mortgage of any property by or to such an issuer, and to any other action by

such an issuer. He may execute and deliver any and all instruments in

writing which he deems advisable to carry out any of his powers as

custodian.

(g) The custodian shall register each security which is custodial

property and in registered form in the name of the custodian followed, in

substance, by the words: as custodian for ____[name of minor]____ under

the Guam Uniform Gifts to Minors Act. The custodian shall hold all money

which is custodial property in an account with a broker or in an insured

domestic financial institution in the name of the custodian followed, in

substance, by the words: as custodian for____[name of minor]____ under

the Guam Uniform Gifts to Minors Act. The custodian shall keep all other

custodial property separate and distinct from his own property in a manner

to identify it clearly as custodial property.

COL120106

(h) The custodian shall keep records of all transactions with respect to

the custodial property and make them available for inspection at reasonable

intervals by a parent or legal representative of the minor or by the minor, if

he has attained the age of fourteen years.

(i) A custodian has and holds as powers in trust with respect to the

custodial property, in addition to the rights and powers provided in this

Chapter, all the rights and powers which a guardian has with respect to

property not held as custodial property.

(j) If the subject of the gift is a life insurance policy or annuity

contract, the custodian:

(1) In his capacity as custodian, has all incidents of ownership in

the policy or contract to the same extent as if he were the owner,

except that the designated beneficiary of any policy or contract on the

life of the minor shall be the minor=s estate and the designated

beneficiary of any policy or contract on the life of a person other than

the minor shall be the custodian as custodian for the minor for whom

he is acting; and

(2) May pay premiums on the policy or contract out of the

custodial property.