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#1670016 - 02/27/12 03:12 PM NC UTMA
BY THE RULES Offline
Member
Joined: Jun 2004
Posts: 86
NC
When presented with a check payable to individual as custodian for bene under UTMA, we require funds go into like named account which, unfortunately, often results in unhappy customers.
Lately, I've seen a lot of these checks coming in where the beneficiary is no longer a minor (21 or older) and the custodian doesn't want to open an account - says it's reimbursement for college, etc...

Is it acceptable/appropriate for us to open this type of an account when the bene is over 21? Is there EVER a time when it would be okay to allow funds payable this way to go into the personal or business account of the fiduciary?

Thanks.

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#1670704 - 02/28/12 06:53 PM Re: NC UTMA BY THE RULES
BY THE RULES Offline
Member
Joined: Jun 2004
Posts: 86
NC
Does anyone have any thoughts regarding my questions?

Is it acceptable/appropriate for us to open this type of an account when the bene is over 21?

Is there EVER a time when it would be okay to allow funds payable this way to go into the personal or business account of the fiduciary?

Thank you...

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#1670900 - 02/29/12 04:02 AM Re: NC UTMA BY THE RULES
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,633
Galveston, TX
Is it acceptable/appropriate for us to open this type of an account when the bene is over 21?

Yes, the custodian should deposit the funds into such an account and then write a check to the beneficiary as they are required to have proper records to prove the distribution of the funds.

Is there EVER a time when it would be okay to allow funds payable this way to go into the personal or business account of the fiduciary?

Absolutely not.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1673342 - 03/05/12 08:38 PM Re: NC UTMA rlcarey
BY THE RULES Offline
Member
Joined: Jun 2004
Posts: 86
NC
Thank you for your response.

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