Opinion ID: 2001306
Heading Depth: 1
Heading Rank: 6

Heading: surcharge on custodians

Text: For similar reasons we also believe the custodians should not be surcharged for the amounts already expended. Section 5306(e) of the UGMA provides that a custodian who does not receive compensation for his services is not liable for losses to the custodial property, unless they result from his bad faith, intentional wrong-doing or gross negligence, or from his failure to maintain the standard of prudence in investing the custodial property provided in this chapter. We have determined that Husband invested the custodial assets prudently and that his other actions cannot be characterized as bad faith, intentional wrong-doing or gross negligence. Once again, the appropriate aggrieved party may of course seek to surcharge the custodians for any improper expenditures made subsequent to our decision.