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#12881 - 03/08/02 05:06 AM Visa/Debit Card for a Custodial Account
cbinder63 Offline

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cbinder63
Joined: Dec 2001
Posts: 674
Colorado
What is the feeling on issueing a Visa/Debit card on a Custodial Account to the Custodian? I have several bad feelings on this one ...... accountablility & due diligence on our part to start with.

Thanks
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Opinions expressed are my own.

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General Discussion
#12882 - 03/08/02 06:19 PM Re: Visa/Debit Card for a Custodial Account
Anonymous
Unregistered

If the state that your in has adopted the Uniform Fiduciary Act, you may not have a lot of risk. The only problem with the UFA is that it only applies to checks. Your withdrawals would be by debit card.

I havent seen any judicial decisions that extend the protections a bank gets under the UFA when it pays a check drawn by a fiduciary to withdrawals by debit card by a fiduciary, but the logic seems sound. Why should it make a difference whether the fiduciary uses a check, debit card or withdrawal slip to access the money?

The UFA is, in principal, saying that a bank doesnt have to monitor what a fiduciary does. So, if you dont have to moitor check withdrawals, why should you have to monitor other forms of withdrawal?

Having said that, however, I would also check w/VISA to make sure it doesnt have a restriction on issuing a debit card to a fiduciary.the activity of the fiduciary.

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