[§554B-7]  General management duties of
custodial trustee.  (a)  A custodial trustee shall register or record the
instrument transferring title to custodial trust property if appropriate.



(b)  In the management, control, investment, or
retention of custodial trust property, a custodial trustee shall follow the
directions of the beneficiary if the beneficiary is not incapacitated.  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 is
not limited by any other law restricting investments by fiduciaries.  However,
a custodial trustee, in the custodial trustee's discretion, may retain any
custodial trust property received from the transferor.  If a trust company or
other 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 that 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 possession and
control, separate and distinct from all other property in a manner sufficient
to identify it clearly as custodial trust property of the beneficiary. 
Custodial trust property subject to recordation is so identified if it is
recorded, and custodial trust property subject to registration is so identified
if it is registered, or held in an account designated, in the name of the
custodial trustee followed by words stating in substance:  "as custodial
trustee for _________________________ (name of beneficiary) under the Hawaii
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 intervals to the beneficiary or
legal representative of the beneficiary.



(f)  The exercise of a durable power of
attorney for an incapacitated beneficiary is not effective to terminate or
direct the distribution or management of the custodial trust. [L 1989, c 76, pt
of §1]