(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) (1) Except as provided in paragraph (2) of this subsection, in dealing with custodial property:
(i) 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;
(ii) 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; and
(iii) 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.
(2) A fiduciary subject to § 15-114 of this article shall comply with that section in dealing with custodial property.
(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) (1) 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.
(2) 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.
(3) 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 Maryland 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 14 years.
Structure Maryland Statutes
Title 13 - Protection of Minors, Disabled Persons, Susceptible Adults, and Older Adults
Subtitle 3 - Maryland Uniform Transfers to Minors Act
Section 13-301 - Estates and Trusts
Section 13-302 - Law Governing
Section 13-303 - Contingent Transfers
Section 13-304 - Irrevocable Transfer to Custodian by Individual
Section 13-305 - Irrevocable Transfer by Personal Representative or Trustee
Section 13-307 - Irrevocable Transfer by Other Persons Holding Property or Owing Debt to Minor
Section 13-308 - Receipt and Discharge
Section 13-309 - Creation of Custodial Property; When Transfer Made
Section 13-310 - Nature of Custodianship
Section 13-311 - Effect of Transfer
Section 13-312 - Duties and Powers of Custodian
Section 13-313 - Rights of Custodian; Liability
Section 13-314 - Delivery or Payment to Minor or for Minor's Use and Benefit
Section 13-315 - Compensation of Custodian; Bond
Section 13-316 - Liability of Third Persons Dealing With Custodian
Section 13-317 - Claims Against Custodial Property
Section 13-320 - Transfer of Property to Minor
Section 13-321 - Applicability of Subtitle
Section 13-322 - Validation of Prior Transfers