Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#1670016 - 02/27/12 03:12 PM NC UTMA
BY THE RULES Offline
Member
Joined: Jun 2004
Posts: 91
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.

Return to Top
Operations Compliance
#1670704 - 02/28/12 06:53 PM Re: NC UTMA BY THE RULES
BY THE RULES Offline
Member
Joined: Jun 2004
Posts: 91
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...

Return to Top
#1670900 - 02/29/12 04:02 AM Re: NC UTMA BY THE RULES
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1673342 - 03/05/12 08:38 PM Re: NC UTMA rlcarey
BY THE RULES Offline
Member
Joined: Jun 2004
Posts: 91
NC
Thank you for your response.

Return to Top

Moderator:  Andy_Z, John Burnett