Broad Authority with a Clear Boundary
Arizona gives UTMA custodians significant flexibility. A custodian can buy, sell, invest, and manage custodial property the same way any unmarried adult owner could manage their own assets. There is no need to petition a court for permission to make routine financial decisions on behalf of the minor.
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. Every action must be taken in the custodial role, for the minor's benefit. If a custodian sells an investment in the custodial account, the proceeds belong to the minor, not the custodian.
Accountability Still Applies
Having broad powers does not mean operating without limits. Arizona makes clear that this authority does not excuse a custodian from the duties outlined in the care-of-property statute. The custodian still must act prudently, keep property separate, 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)In practice, this means the custodian has the freedom to act decisively but remains answerable for those decisions. A custodian who invests recklessly or fails to keep proper records could face liability, even though they technically had the authority to make those investment choices. The power and the responsibility go hand in hand.
