{"jurisdiction": "us-ny", "code": "eptl", "section": "7-6.12", "citation": "EPTL § 7-6.12", "heading": "Care of custodial property", "text": ["§ 7-6.12 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 and is specifically authorized to delegate investment and management functions in the manner of a trustee as provided in section 11-2.3. 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 certificated securities may be held on deposit at a stock brokerage firm or a financial institution registered in a street name or nominee name. 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 New York 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."], "official_source": "https://www.nysenate.gov/legislation/laws/EPT/7-6.12", "from_official_api": true, "plain_english": "A custodian must take charge of and prudently manage the minor's property, keep it separate, and keep records.\n- **(a)** A custodian **shall** take control of the property, register or record title if appropriate, and collect, hold, manage, invest and reinvest it.\n- **(b)** The custodian must use the care of a **prudent person dealing with another's property**, is **not limited by statutes restricting fiduciary investments**, and may **delegate investment and management** as a trustee may under § 11-2.3. A custodian with (or named for claimed) **special skill must use it**. ★ The custodian may, in its discretion and **without liability**, **retain any property received from the transferor**.\n- **(c)** Life insurance or endowment policies may be bought or paid for on (1) the **minor's life only if the minor or minor's estate is sole beneficiary**, or (2) another person's life in whom the minor has an insurable interest, only to the extent the minor, the minor's estate or the custodian as custodian is the **irrevocable beneficiary**.\n- **(d)** Custodial property must at all times be **kept separate and clearly identified** as the minor's. Certificated securities may be held at a stock brokerage firm or financial institution in **street or nominee name**. An **undivided interest** is identified if the minor holds it as a **tenant in common** and it is fixed; property subject to recordation is identified if **recorded**; registered property is identified if registered, or held in an account, in the custodian's name \"as a custodian for (minor) under the New York Uniform Transfers to Minors Act.\"\n- **(e)** The custodian must keep **records of all transactions**, including tax-return information, open to reasonable inspection by a parent or legal representative, or by the minor **once 14 years old**. ★", "in_force_on": "2026-05-31", "retrieved": "2026-09-27", "url": "https://elyphived.com/us-ny/eptl/7-6.12", "publisher": "Elyphived LLC"}