§ 633f-7

633F.7 General duties of custodial trustee. 1. If appropriate, a custodial trustee shall register or record the instrument vesting title to custodial trust property. 2. If the beneficiary is not incapacitated, a custodial trustee shall follow the directions of the beneficiary in the management, control, investment, or retention of the custodialtrust property. In the absence of effective contrary direction by the beneficiary while notincapacitated, the custodial trustee shall observe the prudent investment standards set forthin section 633.123. However, a custodial trustee, in the custodial trustee’s discretion, mayretain any custodial trust property received from the transferor. If a custodial trustee hasa special skill or expertise or is named custodial trustee on the basis of representation of aspecial skill or expertise, the custodial trustee shall use that skill or expertise. 3. Subject to subsection 2, a custodial trustee shall take control of and collect, hold, manage, invest, and reinvest custodial trust property. 4. 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

and reinvest custodial trust property. 4. 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 toidentify 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 soidentifying the property is recorded, and custodial trust property subject to registration isso 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 Iowa Uniform Custodial Trust Act'. 5. 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 shallmake the records and information available at reasonable times to the beneficiary or legalrepresentative of the beneficiary. 6. The exercise of a durable power of attorney for an incapacitated beneficiary is not effective to terminate or direct the administration or distribution of a custodial

sentative of the beneficiary. 6. The exercise of a durable power of attorney for an incapacitated beneficiary is not effective to terminate or direct the administration or distribution of a custodial trust. 2021 Acts, ch 8, §7Referred to in §633F.8 Sat Dec 23 12:17:49 2023 Iowa Code 2024, Section 633F.7 (3, 0)