(1) If appropriate, a custodial trustee shall register or record the instrument vesting title to custodial trust property.
If the beneficiary is not incapacitated, a custodial trustee shall follow the directionsof 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, or if the beneficiary is incapacitated, the custodial trustee shall observe the standard of care that would be observed by a prudent person dealing with property of another and shall comply with the provisions of the "Colorado Uniform Prudent Investor Act". However, a custodial trustee, in the custodial trustee's discretion, may retain any custodial trust property received from the transferor.
Subject to subsection (2) of this section, a custodial trustee shall take control of andcollect, hold, manage, invest, and reinvest custodial trust property.
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 "Colorado Uniform Custodial Trust Act"".
A custodial trustee shall keep records of all transactions with respect to custodialtrust 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.
The exercise of a durable power of attorney for an incapacitated beneficiary is noteffective to terminate or direct the administration or distribution of a custodial trust.
Source: L. 99: Entire article added, p. 1215, § 1, effective August 4.
Editor's note: Colorado modified the model act by directing that the custodial trustee shall also comply with the provisions of the "Colorado Uniform Prudent Investor Act". 15-1.5-108. General powers of custodial trustee. (1) A custodial trustee, acting in a fiduciary capacity, has all the rights and powers over custodial trust property which an unmarried adult owner has over individually owned property, but a custodial trustee may exercise those rights and powers in a fiduciary capacity only.
(2) This section does not relieve a custodial trustee from liability for a violation of section 15-1.5-107.
Source: L. 99: Entire article added, p. 1216, § 1, effective August 4.