Section 3912 Of Part 9. California Uniform Transfers To Minors Act From California Probate Code >> Division 4. >> Part 9.
3912
. (a) A custodian shall do all of the following:
(1) Take control of custodial property.
(2) Register or record title to custodial property if appropriate.
(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 except that:
(1) If a custodian is not compensated for his or her services, the
custodian is not liable for losses to custodial property unless they
result from the custodian's bad faith, intentional wrongdoing, or
gross negligence, or from the custodian's failure to maintain the
standard of prudence in investing the custodial property provided in
this section.
(2) 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: