UTMA Account Title

Question: Exactly how should an UTMA account be titled? We've had a lot of questions about this, and it isn't spelled out in our new accounts manual.

Answer: Mary Beth Guard and I had a discussion on this, and we tend to disagree with some states that suggest you should list the custodian's name first if the account is not interest bearing. If someone is looking up the custodian's name for other purposes, they may only read the first line and not realize the funds do not belong to the first name on the account. Therefore, we recommend the account be styled as: "Johnny Doe, a minor, UTMA Account, by Ruth Doe, custodian" Johnny's SSN is the proper TIN. With his name first, you have a match for IRS reporting purposes.

Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 9, 11/04