When opening an UTMA account can the funds be placed in a Certificate of deposit?
Currently our UTMA accounts (we are in Texas) do not have a service charge and they are opened as a minor savings product type. Our disclosures do not state that they will be converted to a regular savings service charge at the age of 18 but we are soon changing our disclosures to read that minor savings will be converted to regular savings when the minor reaches 18.
On existing UTMA accounts are we able to change the service charge with a 30 day notice or for the existing accounts and do we have to wait until the minor is 21 to be able to change their service charge?
I have received some responses that an UTMA is irrevocable and because the custodian was not aware of the charge at the time, that we could not enforce the change until the minor reached the age of 21.
Is a custodian of a minor's account considered a person on whose behalf a reportable transaction is completed on a CTR? We have a situation where someone came in and deposited over $10,000 into the minor's account. The conductor is neither the minor or the custodian. I know that we have to include the conductor and the minor on the CTR. But do we have to include the custodian?
If a child is an owner on the account, but not the signer on the account can we give the child the balance? Same for a Rep payee account. Can we give the owner the balance, even though he is not the signer?
Can a minor (someone who is 16 years old) open a ILUTMA account for their own child? The Illinois UTMA states a custodian has to be 21 years old. Please advise if the 16 year old mother can be the custodian.
Do we need to run OFAC on a newborn baby whose mother or father have opened a savings account for the baby? We do have the Social Security number for the newborn.
We have customers who have social security checks for dependents made in the following manner: "John Doe For Jane Doe" wherein in some cases the dependent is either a child or disabled person. I argue that these checks are payable to "John" as he is the first payee, and "Jane" is not actually a payee. Therefore, the check should be negotiable by John, or depositable into an account held solely by John. My FI has recently instituted a rule requiring these types of checks to be deposited into a) a UTMA account for "Jane" b) a Rep-Payee account for Jane or c) an account held solely by Jane. As in many cases Jane is either a minor or disabled, I believe forcing an account to be opened under her name to be irresponsible banking. I would like to know the guidelines for negotiating a check made either to "John Doe For Jane Doe" or "John Doe For the Benefit of Jane Doe"
I have a customer who came in last week to cash a check made payable to his minor child, using a UTMA savings account that he has opened for his child at our bank. He endorsed the check on the back with his fullname and also wrote "sign for + his child's full name". As far as I know, if a check is made payable to a minor who has a UTMA account, the check should be deposited to the UTMA account and cannot be cashed. On the other hand, it is said that only the custodian of the UTMA account can have full access to the account, which means to me that he can cash the check made payable to his minor child. How should I understand the rights of a custodian to a UTMA account correctly?
If a customer deposits a check made payable to "Karen Smith Custodian, Charles Smith UTMA TX" can the check be deposited into Karen Smith's personal checking account?
Can a 40-year-old "minor" deposit a check payable to "father CUST for minor under UTMA" if the father is deceased and the minor is an executor or estate representative?