Paying Back and Fees for Custodians
Serving as a custodian under the UTMA is a responsibility that can involve real costs. This statute makes sure custodians are not left paying out of pocket. The custodial property itself covers reasonable expenses.
A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties.
A.R.S. § 14-7665(A)Fees work a little differently. A custodian may charge a reasonable fee for services each year. However, this choice is noncumulative. This means a custodian who skips a year cannot go back and collect for that period.
There is also one clear restriction. A person who transferred property to themselves as custodian under section 14-7654 cannot charge fees. This prevents someone from gifting assets to a minor, naming themselves custodian, and then billing the account.
When a Bond May Be Required
Unlike many fiduciary roles, a custodian does not need to post a bond by default. A court only requires a bond during a removal proceeding under section 14-7668. This keeps the process simple for family members who step into the role.
Except for a person who is a transferor pursuant to section 14-7654, a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year.
A.R.S. § 14-7665(B)For families setting up custodial accounts, these rules help set expectations. The custodian is a caretaker, not a volunteer. But the law draws clear lines around what counts as fair pay.