US Laws, Codes, Statutes & Cases

§ 1339.34. Powers and duties of custodian.
 

(A)  The custodian shall collect, hold, manage, invest, and reinvest the custodial property. 

(B)  The custodian shall pay over to the minor for expenditure by the minor, or expend for the use or benefit of the minor, as much of or all the custodial property as the custodian considers advisable for the use and benefit of the minor in the manner, at the time or times, and to the extent that the custodian in his discretion considers suitable and proper, with or without court order, with or without regard to the duty or ability of the custodian or of any other person to support the minor or his ability to do so, and with or without regard to any other income or property of the minor that may be applicable or available for any purpose. Any payment or expenditure that is made under this division is in addition to, is not a substitute for, and does not affect the obligation of any person to support the minor for whom the payment or expenditure is made. 

(C)  The court, on the petition of a parent or guardian of the minor or of the minor, if he has attained the age of fourteen years, may order the custodian to pay over to the minor for expenditure by him or to expend as much of or all the custodial property as is necessary for the use and benefit of the minor. 

(D) (1)  Except as provided in division (D)(2) of this section, to the extent that the custodial property is not so expended, the custodian shall deliver or pay the custodial property over to the minor on his attaining the age of twenty-one years or, if the minor dies before attaining the age of twenty-one years, shall, upon the minor's death, deliver or pay the custodial property over to the estate of the minor. 

(2) If the donor or transferor, in the written instrument that makes or provides for the gift or transfer, directs the custodian to deliver or pay over the custodial property to the minor on his attaining any age between eighteen and twenty-one, the custodian shall deliver or pay over the custodial property to the minor on his attaining that age, or, if the minor dies before attaining that age, the custodian shall, upon the minor's death, deliver or pay the custodial property over to the estate of the minor. 

(E)  The custodian, notwithstanding statutes restricting investments by fiduciaries, shall invest and reinvest the custodial property as would a prudent person of discretion and intelligence dealing with the property of another, except that the custodian may, in the discretion of the custodian and without liability to the minor or the estate of the minor, retain any custodial property received in a manner prescribed in sections 1339.31 to 1339.39 of the Revised Code. If a custodian has special skills or is named custodian on the basis of representations of special skills or expertise, the custodian is under a duty to use those skills or that expertise. 

(F)  The custodian may sell, exchange, convert, or otherwise dispose of custodial property in the manner, at the time or times, for the price or prices, and upon the terms he considers advisable. He may vote in person or by general or limited proxy a security that is custodial property. He may consent, directly or through a committee or other agent, to the reorganization, consolidation, merger, dissolution, or liquidation of an issuer of a security that is custodial property, and to the sale, lease, pledge, or mortgage of any property by or to such an issuer, and to any other action by such an issuer. He may purchase any life or endowment insurance policy or annuity contract on the life of the minor or any member of the family of the minor and pay, from funds in his custody, any premiums on any life or endowment insurance policy or annuity contract held by him as custodial property. He may execute and deliver any and all instruments in writing that he considers advisable to carry out any of his powers as custodian. 

(G)  The custodian shall register each security that is custodial property and in registered form in the name of the custodian, followed, in substance, by the words: "as custodian for  .................... (name of minor) under the Ohio Transfers to Minors Act," or shall maintain each security that is custodial property and in registered form in an account with a broker or in a financial institution in the name of the custodian, followed, in substance, by the words: "as custodian for  .................... (name of minor) under the Ohio Transfers to Minors Act." A security held in an account with a broker or in a financial institution in the name of the custodian may be held in the name of the broker or financial institution. A security that is custodial property and in registered form and that is held by a broker or in a financial institution in which the broker or financial institution does not have a lien for indebtedness due to it from a custodial account may not be pledged, lent, hypothecated, or disposed of except upon the specific instructions of the custodian. The custodian shall hold all money that is custodial property in an account with a broker or in a financial institution in the name of the custodian, followed, in substance, by the words: "as custodian for  .................... (name of minor) under the Ohio Transfers to Minors Act." The custodian shall hold all life or endowment insurance policies, annuity contracts, or benefit plans that are custodial property in the name of the custodian, followed, in substance, by the words "as custodian for  .................... (name of minor) under the Ohio Transfers to Minors Act." The custodian shall take title to all real estate that is custodial property in the name of the custodian, followed, in substance, by the words: "as custodian for  .................... (name of minor) under the Ohio Transfers to Minors Act." The custodian shall keep all other custodial property separate and distinct from his own property in a manner to identify it clearly as custodial property. 

(H)  The custodian shall keep records of all transactions with respect to the custodial property and make the records available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor, if he has attained the age of fourteen years. 

(I)  A custodian has, with respect to the custodial property, in addition to the rights and powers provided in sections 1339.31 to 1339.39 of the Revised Code, all the rights and powers that a guardian has with respect to property not held as custodial property. 

(J)  The custodian may invest in or pay premiums on any life or endowment insurance policy or annuity contract on either of the following: 

(1) The life of the minor, if the minor or the estate of the minor is the sole beneficiary under the policy or contract; 

(2) The life of any person in whom the minor has an insurable interest, if the minor, his estate, or the custodian in his capacity as custodian is the sole beneficiary. 

(K)  All of the rights, powers, and authority of the custodian over custodial property, including all of the incidents of ownership in any life or endowment insurance policy, annuity contract, or benefit plan, are held only in the capacity of the custodian as custodian. 
 

HISTORY: 129 v H 630 (Eff 1-1-62); 135 v S 1 (Eff 1-1-74); 136 v S 166 (Eff 8-18-76); 137 v H 1 (Eff 8-26-77); 138 v H 1007 (Eff 4-9-81); 141 v H 297 (Eff 5-7-86); 145 v H 62. Eff 10-1-93.
 

Analogous to former RC § 1339.21 (126 v 602), repealed 129 v H 630, § 2, eff 1-1-62.