There is a newer version of the South Dakota Codified Laws
2006 South Dakota Code - 55-10A-14 — Care of custodial property.
55-10A-14. Care of custodial property. A custodian shall 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 a 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 any custodial property received from a
transferor.
A custodian
may invest in or pay premiums on life insurance or endowment
policies on 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
at all times shall keep custodial property separate and distinct
from all other property in a manner sufficient to identify it
clearly as custodial property of the minor. Custodial property
consisting of an undivided interest is so identified if the minor's
interest is held as a tenant in common and is fixed. Custodial
property subject to recordation is so identified if it is recorded,
and custodial property subject to registration is so identified if
it is either registered, or held in an account designated, in the
name of the custodian, followed in substance by the words: "as a
custodian for ___________________ (name of minor) under the South
Dakota Uniform Transfers to Minors Act."
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
attained the age of fourteen years.
Source: SL 1986, ch 409, § 14.
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