{"data":{"id":"us-ky/krs-385.122","jurisdiction":"us-ky","citation":"KRS 385.122","heading":"Care of custodial property.","body":"(1) A custodian shall:\n(a) Take control of custodial property;\n(b) Register or record title to custodial property if appropriate; and\n(c) Collect, hold, manage, invest, and reinvest custodial property.\n(2) In dealing with custodial property, a custodian shall observe the standard of  care\nthat would be observed by a prudent person, dealing with property of another and is\nnot limited by any other statute restricting investments by fiduciaries. If a custodian\nhas a special skill or expertise or is named custodian on the basis of represe ntations\nof a special skill or expertise, the custodian shall use that skill or expertise.\nHowever, a custodian, in the custodian's discretion and without liability to the\nminor or the minor's estate, may retain any custodial property received from a\ntransferor.\n(3) A custodian may invest in or pay premiums on life insurance or endowment policies\non:\n(a) The life of the minor only if the minor or the minor's estate is the sole\nbeneficiary; or\n(b) The life of another person in whom the minor has an insurable  interest only to\nthe extent that the minor, the minor's estate, or the custodian in the capacity of\ncustodian, is the irrevocable beneficiary.\n(4) A custodian at all times shall keep custodial property separate and distinct from all\nother property in a ma nner sufficient to identify it clearly as custodial property of\nthe minor. Custodial property consisting of an undivided interest is so identified if\nthe minor's interest is held as a tenant in common and is fixed. Custodial property\nsubject to recordation is so identified if it is recorded, and custodial property subject\nto registration is so identified if it is either registered, or held in an account\ndesignated, in the name of the custodian, followed in substance by the words: \"as a\ncustodian for ---------- (name of minor) under the Kentucky Uniform Transfers to\nMinors Act.\"\n(5) A custodian shall keep records of all transactions with respect to custodial property,\nincluding information necessary for the preparation of the minor's tax returns, and\nshall make them available for inspection at reasonable intervals by a parent or legal\nrepresentative of the minor or by the minor if the minor has attained the age of\nfourteen (14) years.","path":["KRS Chapter 385"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35803","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:15Z","sha256":"bb36e8ffb9573756d08fe03752e69f35107dacad24fe2ba60f49c5d7a61c8750","source_id":"us-ky","stale":false,"prev":"us-ky/krs-385.120","next":"us-ky/krs-385.130"},"notice":"GroundRules: Original legal text. Not legal advice."}