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#1936660 - 06/30/14 04:51 PM UTMA Account Activity
2old2new Offline
Member
Joined: Jun 2009
Posts: 65
tn
We recently had an auditor question us about UTMA savings account activity. In his review of one acct he found questionable withdrawals ($3500) for a parent IRA and other larger withdrawals. There was a large deposit made that was not seemingly the child's funds. I would like to know if other banks monitor these accts, talk with custodians, or file (his recommendation.) Upon reviewing, I do not feel this type of acct should be opened for the average minor acct/with small balances. Thanks for any insight.

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#1936681 - 06/30/14 05:44 PM Re: UTMA Account Activity 2old2new
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Your bank has no express or implied responsibilities to monitor activity in any fiduciary account including UTMAs. However, if you come across suspicious activity you cannot ignore it without taking significant financial and regulatory risks.

Your auditor could appropriately say you need to evaluate a situation for SAR filing, but it's beyond his or her authority to tell you what your decision should be.
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#1938489 - 07/08/14 05:02 PM Re: UTMA Account Activity Elwood P. Dowd
2old2new Offline
Member
Joined: Jun 2009
Posts: 65
tn
Thank you, Ken. If we decided that the funds were not properly handled in a UTMA acct, what type of suspicious activity would this be for item 29-38? Thank you.

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#2071978 - 03/31/16 08:30 PM Re: UTMA Account Activity 2old2new
CML LHS Offline
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CML LHS
Joined: Oct 2014
Posts: 18
WA
I know this is an old thread, but we are in this situation now. What did you choose to file as the activity? Did you choose Misuse of position or self-dealing, or just transaction with no apparent economic, business, or lawful purpose? We are also filing for structuring.

Any help would be appreciated!!

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#2071995 - 03/31/16 09:09 PM Re: UTMA Account Activity CML LHS
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
For me, 35(e) embezzlement/theft/misuse of funds and 35(z) breach of fiduciary duty.

I acknowledge that 35(j) misuse of position or self dealing is accurate, but I shy away from it because it's the language normally used to describe misconduct by a bank employee, not a customer.

Keep in mind, they created this fuzzy mess with all of the check boxes. If the person looking over your shoulder disagrees with your choice just say, "Oh, I'm so glad to know that, I couldn't find that anywhere! Where did you find it?"
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#2072001 - 03/31/16 09:40 PM Re: UTMA Account Activity 2old2new
CML LHS Offline
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CML LHS
Joined: Oct 2014
Posts: 18
WA
Thank you so much!

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