Care of custodial property.

A custodian shall perform the following: Take control of custodial property; Register or record title to custodial property if appropriate; and Collect, hold, manage, invest, and reinvest custodial property. 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. If a custodian has a special skill or expertise or is named custodian on the basis of representations of special skill or expertise, the custodian shall use that skill or expertise. However, a custodian, in the custodian’s discretion and without liability to the minor or the minor’s estate, may retain custodial property received from a transferor. A custodian may invest in or pay premiums on life insurance or endowment policies on the following: The life of the minor only if the minor or the minor’s estate is the sole beneficiary; or 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. A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor’s tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor, if the minor has reached the age of 14 years.