(a) If appropriate, acustodial trustee shall register or record the instrument vesting title tocustodial trust property.
(b) If the beneficiaryis not incapacitated, a custodial trustee shall follow the directions of thebeneficiary in the management, control, investment, or retention of thecustodial trust property.
If the beneficiary isincapacitated or the beneficiary has capacity but has not given direction, thecustodial trustee shall observe the standard of care that would be observed bya prudent person dealing with property of another and is not limited by anyother law restricting investments by fiduciaries. However, a custodial trustee,in the custodial trustee's discretion, may retain any custodial trust propertyreceived from the transferor.
If a custodial trustee has aspecial skill or expertise or is named custodial trustee on the basis ofrepresentation of a special skill or expertise, the custodial trustee shallobserve the standard of care expected of one with that skill or expertise.
(c) Subject tosubsection (b) of this section, a custodial trustee shall take control of andcollect, hold, manage, invest, and reinvest custodial trust property.
(d) A custodial trusteeat all times shall keep custodial trust property of which the custodial trusteehas control, separate from all other property in a manner sufficient toidentify it clearly as custodial trust property of the beneficiary. Custodialtrust property, the title to which is subject to recordation, is adequatelyidentified as such if an appropriate instrument so identifying the property isrecorded in the name of the custodial trustee, designated in substance "ascustodial trustee for ____________ (name of beneficiary) under the North CarolinaUniform Custodial Trust Act". Custodial trust property subject toregistration is so identified if it is registered, or held in an account in thename of the custodial trustee, designated in substance "as custodialtrustee for ____________ (name of beneficiary) under the North Carolina UniformCustodial Trust Act".
(e) A custodial trusteeshall keep records of all transactions with respect to custodial trustproperty, including information necessary for the preparation of tax returns,and shall make the records and information available at reasonable times to thebeneficiary or legal representative of the beneficiary.
(f) Unless the durablepower of attorney specifically provides otherwise, the exercise of the durablepower of attorney for an incapacitated beneficiary is not effective toterminate or direct the administration or distribution of a custodial trust. (1995,c. 486, s. 1.)
(a) If appropriate, acustodial trustee shall register or record the instrument vesting title tocustodial trust property.
(b) If the beneficiaryis not incapacitated, a custodial trustee shall follow the directions of thebeneficiary in the management, control, investment, or retention of thecustodial trust property.
If the beneficiary isincapacitated or the beneficiary has capacity but has not given direction, thecustodial trustee shall observe the standard of care that would be observed bya prudent person dealing with property of another and is not limited by anyother law restricting investments by fiduciaries. However, a custodial trustee,in the custodial trustee's discretion, may retain any custodial trust propertyreceived from the transferor.
If a custodial trustee has aspecial skill or expertise or is named custodial trustee on the basis ofrepresentation of a special skill or expertise, the custodial trustee shallobserve the standard of care expected of one with that skill or expertise.
(c) Subject tosubsection (b) of this section, a custodial trustee shall take control of andcollect, hold, manage, invest, and reinvest custodial trust property.
(d) A custodial trusteeat all times shall keep custodial trust property of which the custodial trusteehas control, separate from all other property in a manner sufficient toidentify it clearly as custodial trust property of the beneficiary. Custodialtrust property, the title to which is subject to recordation, is adequatelyidentified as such if an appropriate instrument so identifying the property isrecorded in the name of the custodial trustee, designated in substance "ascustodial trustee for ____________ (name of beneficiary) under the North CarolinaUniform Custodial Trust Act". Custodial trust property subject toregistration is so identified if it is registered, or held in an account in thename of the custodial trustee, designated in substance "as custodialtrustee for ____________ (name of beneficiary) under the North Carolina UniformCustodial Trust Act".
(e) A custodial trusteeshall keep records of all transactions with respect to custodial trustproperty, including information necessary for the preparation of tax returns,and shall make the records and information available at reasonable times to thebeneficiary or legal representative of the beneficiary.
(f) Unless the durablepower of attorney specifically provides otherwise, the exercise of the durablepower of attorney for an incapacitated beneficiary is not effective toterminate or direct the administration or distribution of a custodial trust. (1995,c. 486, s. 1.)
(a) If appropriate, acustodial trustee shall register or record the instrument vesting title tocustodial trust property.
(b) If the beneficiaryis not incapacitated, a custodial trustee shall follow the directions of thebeneficiary in the management, control, investment, or retention of thecustodial trust property.
If the beneficiary isincapacitated or the beneficiary has capacity but has not given direction, thecustodial trustee shall observe the standard of care that would be observed bya prudent person dealing with property of another and is not limited by anyother law restricting investments by fiduciaries. However, a custodial trustee,in the custodial trustee's discretion, may retain any custodial trust propertyreceived from the transferor.
If a custodial trustee has aspecial skill or expertise or is named custodial trustee on the basis ofrepresentation of a special skill or expertise, the custodial trustee shallobserve the standard of care expected of one with that skill or expertise.
(c) Subject tosubsection (b) of this section, a custodial trustee shall take control of andcollect, hold, manage, invest, and reinvest custodial trust property.
(d) A custodial trusteeat all times shall keep custodial trust property of which the custodial trusteehas control, separate from all other property in a manner sufficient toidentify it clearly as custodial trust property of the beneficiary. Custodialtrust property, the title to which is subject to recordation, is adequatelyidentified as such if an appropriate instrument so identifying the property isrecorded in the name of the custodial trustee, designated in substance "ascustodial trustee for ____________ (name of beneficiary) under the North CarolinaUniform Custodial Trust Act". Custodial trust property subject toregistration is so identified if it is registered, or held in an account in thename of the custodial trustee, designated in substance "as custodialtrustee for ____________ (name of beneficiary) under the North Carolina UniformCustodial Trust Act".
(e) A custodial trusteeshall keep records of all transactions with respect to custodial trustproperty, including information necessary for the preparation of tax returns,and shall make the records and information available at reasonable times to thebeneficiary or legal representative of the beneficiary.
(f) Unless the durablepower of attorney specifically provides otherwise, the exercise of the durablepower of attorney for an incapacitated beneficiary is not effective toterminate or direct the administration or distribution of a custodial trust. (1995,c. 486, s. 1.)
