Vermont § 3222 - Care of custodial property

§ 3222. 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 Vermont 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, legal
  representative of the minor, financial guardian of the minor, or the minor if the
  minor has attained 14 years of age. (Added 2015, No. 7, § 1.)