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December 3, 2014
Overdrafts: Latest Regulatory Feedback, Guidance & Best Practices Webinar
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Bankruptcy: Creditor Do's and Don'ts
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Integrated Disclosures - An Implementation Strategy
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Loan Review Best Practices for a Community Bank
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December 19, 2014
PREPAID PRODUCTS - Understanding the CFPB Proposal
John Burnett



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#1205807 - 06/23/09 09:59 AM UTMA and age of majority?
AuditorK Offline
Platinum Poster

Registered: 02/13/03
Posts: 956
Loc: PA
According to PA's Uniform Transfers to Minors Act, a minor is defined as "an individual who has not attained 21 years of age". The age of majority in PA, outside of the UTMA, is age 18.

My confusion is this, if a custodian wants to open an UTMA account for a person who is 18.5 years old (of majority under PA law, except not of majority under the UTMA), can we do this?

Any help would be much appreciated!

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Deposits and Payments
#1205943 - 06/23/09 11:42 AM Re: UTMA and age of majority? [Re: AuditorK]
John Burnett Offline
10K Club

Registered: 10/27/00
Posts: 30859
Loc: Cape Cod
The Pennsylvania UTMA (20 Pa. CSA 5301-5321) provides that for the purposes of the UTMA, the age is 21. In most cases, then, you would be correct to open an account for the custodian if the beneficial owner is under the age of 21.

The exception, I think, would be if the property in the custodianship was transferred to the custodianship under section 5306 ("Other transfers by fiduciary") or section 5307 ("Transfer by obligor"). If the custodian tells you that the funds in the account aren't from those two sources, you'd be fine opening the account. (If the property was transferred under 5306 or 5307, the age for the custodian's ending the custodianship and surrendering the property is 18.)

Note: There is a provision in 5321 that would even allow you to open a custodial account after the beneficiary has reached 21 years of age. The circumstances are limited, and you should contact legal counsel for guidance in such cases.
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John S Burnett
BankersOnline.com

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