Section 7. (a) If appropriate, a custodial trustee shall register or record the instrument vesting title to custodial trust property.
(b) If the beneficiary is not incapacitated, a custodial trustee shall follow the directions of the beneficiary in the management, control, investment, or retention of the custodial trust property. In the absence of effective contrary direction by the beneficiary while not incapacitated, the custodial trustee shall observe the standard of care that would be observed by a prudent person dealing with property of another and not limited by any other law restricting investments by fiduciaries; provided, however, that a custodial trustee, in the custodial trustee's discretion, may retain any custodial trust property received from the transferor. If a custodial trustee has a special skill or expertise or is named custodial trustee on the basis of representation of a special skill or expertise, the custodial trustee shall use such skill or expertise.
(c) Subject to subsection (b), a custodial trustee shall take control of and collect, hold, manage, invest, and reinvest custodial trust property.
(d) A custodial trustee at all times shall keep custodial trust property of which the custodial trustee has control, separate from all other property in a manner sufficient to identify it clearly as custodial trust property of the beneficiary. Custodial trust property, the title to which is subject to recordation, is so identified if an appropriate instrument so identifying the property is recorded, and custodial trust property subject to registration is so identified if it is registered, or held in an account in the name of the custodial trustee, designated in substance: ''as custodial trustee for ___ (name of beneficiary) under the Massachusetts Uniform Custodial Trust Act.''
(e) A custodial trustee shall keep records of all transactions with respect to custodial trust property, including information necessary for the preparation of tax returns, and shall make the records and information available at reasonable times to the beneficiary or legal representative of the beneficiary.
(f) The exercise of a durable power of attorney for an incapacitated beneficiary shall not be effective to terminate or direct the administration or distribution of a custodial trust.
Structure Massachusetts General Laws
Part II - Real and Personal Property and Domestic Relations
Chapter 203b - Uniform Custodial Trust Act
Section 2 - Creation; Termination; Augmentation of Trust Property; Designation of Successor Trustee
Section 3 - Designation as Substitute or Successor Custodial Trustees
Section 4 - Custodial Trustee's Acceptance
Section 5 - Transfer of Trust Property for Use and Benefit of Incapacitated Individual
Section 6 - Multiple Beneficiaries; Right of Survivorship
Section 7 - Vesting Title; Management of Trust Property; Duties
Section 8 - Trustee's Rights and Powers Over Trust Property
Section 9 - Payments to Beneficiaries
Section 10 - Administration of Trust for Incapacitated Beneficiary; Determination of Incapacity
Section 11 - Third Person Dealing With One Purporting to Act as Trustee
Section 12 - Claims Against Trust Property; Trustee, Beneficiary Liability
Section 13 - Trustee Declining to Serve; Resignation; Petition for Removal
Section 15 - Written Statement of Property and Administration; Petition for Accounting
Section 16 - Claims for Relief; Time Limitations
Section 17 - Termination of Trust; Order of Distribution