New Mexico § 46-7-23 - Care of custodial property

§ 46-7-23. 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 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 has attained the age of fourteen

years.