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#796741 - 08/16/07 04:15 PM Custodians on KYUTMA accounts
cub1854 Offline
New Poster

Registered: 08/16/07
Posts: 4
I have a question about custodians on minor accounts. I know in Kentucky you can have only 1 custodian. Can you tell me why? also what state allow 2 custodians?

Thanks for your time.

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#796933 - 08/16/07 06:45 PM Re: Custodians on KYUTMA accounts [Re: cub1854]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49447
Loc: Galveston, TX
Can you tell me why?

Because it is the law?


also what state allow 2 custodians?

You would have to find a state that didn't adopt the UNIFORM TRANSFERS TO MINORS ACT (1986) drafted by the NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS as it is contained in the uniform language.
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The opinions expressed are my own, take them or leave them.

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#797706 - 08/17/07 03:38 PM Re: Custodians on KYUTMA accounts [Re: rlcarey]
cub1854 Offline
New Poster

Registered: 08/16/07
Posts: 4
So, in that language it will say, "Only one custodian for a minor's account"? (not exactly in those words I'm sure). The reason I want to know all of this is because I need to present this to someone who feels it's o.k. to break "the law" and I don't.

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#797862 - 08/17/07 04:56 PM Re: Custodians on KYUTMA accounts [Re: cub1854]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49447
Loc: Galveston, TX
385.102 Single custodianship.

A transfer may be made only for one (1) minor, and only one (1) person may be the custodian. All custodial property held under KRS 385.032 to 385.222 by the same custodian for the benefit of the same minor constitutes a single custodianship.

Effective: July 15, 1986
History: Created 1986 Ky. Acts ch. 182, sec. 10, effective July 15, 1986.
_________________________
The opinions expressed are my own, take them or leave them.

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#799261 - 08/21/07 11:35 AM Re: Custodians on KYUTMA accounts [Re: rlcarey]
cub1854 Offline
New Poster

Registered: 08/16/07
Posts: 4
Thank you, Thank you, Thank you!!!

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#993133 - 07/11/08 08:31 AM Re: Custodians on KYUTMA accounts [Re: cub1854]
Ken_Pegasus Offline
10K Club

Registered: 08/30/01
Posts: 17132
Loc: Another trip around the sun
As for "why," the people who drafted the statute realized that the most likely custodian would be one of the child's parents. (It's not required, just the most likely.)

If both parents were custodians this account would be included in the bounty of the "race to the bank" when the couple decides to divorce. If she's the custodian and he isn't (or vice versa) this account does not become part of the marital dispute.

I think they were pretty smart...
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The world is not a wish granting factory. Hazel Grace Lancaster

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#1046660 - 09/19/08 06:04 PM Re: Custodians on KYUTMA accounts [Re: Ken_Pegasus]
MrNick Offline
New Poster

Registered: 09/19/08
Posts: 1
Loc: Arizona
Per UTMA laws, yes, it's 1 custodian, 1 minor.

I understand that otherwise it could be problems later, such as a 'race to the bank', or disagreements how to invest, but try telling that to newly-weds and it sounds exactly like a prenup.

Aside from just to keep simple and non-problematic, what other reasoning can we give a customer? (ie-taxes or legal.)

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