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A.R.S. § 14-7663

Powers of a UTMA Custodian in Arizona

Verified April 4, 202657th Legislature, 1st Regular Session

A custodian under the Uniform Transfers to Minors Act (UTMA) has broad authority over custodial property. The custodian can act the same way an unmarried adult owner would with their own assets. However, the custodian may only use these powers in the custodial role and stays accountable for all duties.

Title 14, TRUST ADMINISTRATION

azleg.gov

Broad Authority with a Clear Boundary

Under Arizona law, UTMA custodians have significant flexibility. A custodian can buy, sell, invest, and manage custodial property. The custodian acts just as any unmarried adult owner would with their own assets.

There is no need to ask a court before making routine financial decisions. Unlike a formal trust, the custodian's authority is built into the statute itself.

A custodian, acting in a custodial capacity, has all the rights, powers and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers and authority in that capacity only.

A.R.S. § 14-7663(A)

The key phrase is "in that capacity only." A custodian cannot use the minor's property for personal benefit. The custodian must take every action in the custodial role.

For example, if a custodian sells an investment in a UTMA account, the proceeds belong to the minor. The custodian controls all investment decisions, but the minor receives all the benefits.

Accountability Still Applies

Having broad powers does not mean operating without limits. Arizona law still requires the custodian to follow the duties in the care-of-property statute.

This means the custodian must act prudently and keep property separate. The custodian must also maintain records and manage investments responsibly.

This section does not relieve a custodian from liability for a breach of section 14-7662.

A.R.S. § 14-7663(B)

The custodian has freedom to act but remains answerable for those decisions. A custodian who invests recklessly or skips proper records could face liability.

When the minor reaches age 21, the custodian must hand over all custodial accounts and property. Until then, the custodian manages everything under the Arizona UTMA framework.

A. A custodian, acting in a custodial capacity, has all the rights, powers and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers and authority in that capacity only. B. This section does not relieve a custodian from liability for a breach of section 14-7662.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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