I believe if a redemption check from American Funds is payable to "Mary Jones FBO Billy Jones PA/UTMA until age 21" means the check should be deposited into an UTMA account when the minor is not yet 21.
There are other scenerios, like if Billy is over 21 then does he get the money directly, but this is the one I feel the bank could be held liable for when depositing into just the parent's account.
Does anyone have a differing opinion? I appreicate your feedback.

Under no circumstance would I negotiate that check to anything other than an UTMA account. If the child is over 21, the custodian must turn the money over to them. The bank does not get involved. Have them deposit to an UTMA and then the custodian authorizes transfer to the child by writing a check.

I totally agree with you dottiec. I hear so many arguments and excuses for the way these checks are being handled at the branches.
Thanks!

The statute says "(t)he custodian shall transfer in an appropriate manner the custodial property to the minor or the minor's estate (upon termination)." Therefore, my position is that checks payable to a minor under PUTMA go to a PUTMA account, and the custodian disperses. Under the Statute, the custodianship can terminate at age 21, or before, or later. Therefore, the custodian makes that determination, not the bank.