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#2191415 - 08/31/18 04:05 PM UTMA Acct Minor of Age
terpsfan Offline
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If the custodian has not closed a UTMA account how should this be handled should we close the account or prohibit future deposits?

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#2191417 - 08/31/18 04:13 PM Re: UTMA Acct Minor of Age terpsfan
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You don't do anything. If it goes dormant, you escheat it.
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#2191442 - 08/31/18 05:41 PM Re: UTMA Acct Minor of Age terpsfan
terpsfan Offline
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Should we stop them from making deposits?

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#2191452 - 08/31/18 07:08 PM Re: UTMA Acct Minor of Age terpsfan
rlcarey Online
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Not sure why you care - the custodian is the only dog in this hunt, unless you think there is some suspicious behavior being conducted thru the account.
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#2191493 - 09/02/18 03:11 AM Re: UTMA Acct Minor of Age terpsfan
terpsfan Offline
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So even if the minor is now 28 we should not be concerned?

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#2191496 - 09/02/18 04:10 PM Re: UTMA Acct Minor of Age terpsfan
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Well, you always have the ability to just close the account for no reason. If it is bothering you, cut a check payable just like the account is titled and send it to the custodian with a closure letter.
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#2191497 - 09/03/18 10:20 AM Re: UTMA Acct Minor of Age terpsfan
terpsfan Offline
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Should we consider a sar since the minor is of age an they continue to make deposits and the deposits at time are more than $5000?

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#2191498 - 09/03/18 10:53 AM Re: UTMA Acct Minor of Age terpsfan
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What law has been broken other than the custodian breaching their fiduciary duty? But if you deem it suspicious based on the known facts, then by all means, help yourself. The question then becomes why did it take you 7-10 years to recognize it?
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#2191499 - 09/03/18 02:09 PM Re: UTMA Acct Minor of Age terpsfan
terpsfan Offline
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Since it is the custodians responsibility to ensure it follows the UTMA we do not closely monitor these accounts but we came across this one randomly and I was surprised transactions were still going in and out even thought the minor is now 28. It just felt like we should have to step in at some point given this is not what these accounts are for.
Last edited by terpsfan; 09/03/18 03:48 PM.
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#2191518 - 09/04/18 12:17 PM Re: UTMA Acct Minor of Age terpsfan
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Is there any responsibility on our part to make sure the custodian follows through on their responsibility?

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#2191519 - 09/04/18 12:19 PM Re: UTMA Acct Minor of Age terpsfan
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Absolutely not. Like I said before, you have no dog in that hunt. You make the check payable in the form of the UTMA account - what they do with it or how they dispose of the money is not your problem.
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#2191521 - 09/04/18 12:39 PM Re: UTMA Acct Minor of Age terpsfan
terpsfan Offline
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So we have any liability if the we allow the account to continued to be used? So to keep asking questions

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#2191525 - 09/04/18 01:15 PM Re: UTMA Acct Minor of Age terpsfan
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That is a question for your legal counsel.
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#2191611 - 09/05/18 03:29 AM Re: UTMA Acct Minor of Age terpsfan
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Has anyone reached out to the custodian, from a customer service perspective, to point out that it might be time to consider disbursing the account? His/her answer will give you a clue about their intentions and purposes for keeping this account so long. This will also provide useful context for your conversations with legal counsel (and possibly your SAR committee).

I'm just going to hang this question out there to provide a little extra context (no need to answer):
If someone came into a branch and requested to open a UTMA account for their 28 year old child, would you allow it?

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#2191709 - 09/05/18 07:58 PM Re: UTMA Acct Minor of Age terpsfan
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In that case, the bank should NOT allow it because it's illegal to open such an account for the benefit of an adult and the bank is in a position to prevent it.

Has the "minor" in this sad tale made any claim on the account to the bank? Does the "minor" even know the account exists? If s/he does and the custodian won't hand the funds over, it's up to the "minor" to go to court to get an order for the funds. Other than that, check to see if the account qualifies for surrender as abandoned property. If it does, get rid of it that way.
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#2191727 - 09/06/18 03:00 AM Re: UTMA Acct Minor of Age terpsfan
JacF Offline

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Quote:
In that case, the bank should NOT allow it because it's illegal to open such an account for the benefit of an adult and the bank is in a position to prevent it.
I agree, John. I would also apply this logic to future deposits in the original scenario, since the bank has knowledge of the beneficiary's non-minor status.

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#2191730 - 09/06/18 10:59 AM Re: UTMA Acct Minor of Age terpsfan
rlcarey Online
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since the bank has knowledge of the beneficiary's non-minor status.

And why is that really? How does the bank really know how old the beneficiary might be? Some States also provide for several dates, like 25 years old in CA under certain circumstances. The Bank is dabbling in something that does not concern them. If you want to close the account, close the account. But starting to act as the UTMA police - it is not worth the trouble. You do something on one UTMA account and not the next one and you might find some no-longer-minor suing the bank for not doing it for them.
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#2191837 - 09/06/18 05:44 PM Re: UTMA Acct Minor of Age terpsfan
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Of course, closing the account is indeed to best way to ensure that the bank no longer accepts deposits.

And while I'm not suggesting that any bank start policing their UTMAs, I am underscoring that once the bank gains knowledge of a circumstance requiring a specific response, the bank mustn't go on pretending that is doesn't have such knowledge.

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#2192012 - 09/08/18 03:56 PM Re: UTMA Acct Minor of Age terpsfan
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It's interesting how this thread has developed from a simple question into a series of hypothetical what-ifs.
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#2227611 - 12/17/19 09:55 PM Re: UTMA Acct Minor of Age terpsfan
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Is there any prohibition against the bank providing information to beneficiary...IF the bene is already aware of the account?
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#2227616 - 12/17/19 10:53 PM Re: UTMA Acct Minor of Age terpsfan
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It is not their account - it belongs and is managed by the custodian, unless you have a legal order to disclose information to the minor.
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#2227737 - 12/18/19 10:19 PM Re: UTMA Acct Minor of Age rlcarey
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Randy, not trying to be contradictory, BUT you know me, I'm apparently always looking to stir the pot (actually, I'm just trying to garner a proper understanding). So that having been acknowledged, while the account is managed by the custodian, ownership of the funds was transferred to the minor/beneficiary and it is held under their social security number. The Texas Uniform Transfers to Minors Act; specifically, under the Texas Property Code, Title 10, Subtitle A, Chapter 141, Sec. 141.012, Paragraph (b) states: "A transfer made under Section 141.010 is irrevocable, and the custodial property is indefeasibly vested in the minor."

As such, I would contend it IS their account and they should have a right to information.

Please advise.
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#2227740 - 12/18/19 10:37 PM Re: UTMA Acct Minor of Age terpsfan
rlcarey Online
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It may be their funds, but until the custodian transfers the funds to the minor when they reach legal age, it is not their account. It would be no different with a trust account and they were named as a beneficiary. If the beneficiary wants information on the account - their avenue for that is either the trustee and in this case the custodian. I would not be interjecting the bank into the middle of this.
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#2227742 - 12/18/19 10:50 PM Re: UTMA Acct Minor of Age terpsfan
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Similarly a disabled adult may own the funds in their estate account, but the court appointed guardian is the only person who has legal capacity to inquire about the account.
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#2227790 - 12/19/19 05:14 PM Re: UTMA Acct Minor of Age rlcarey
M Cockrell Offline
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Originally Posted by rlcarey
I would not be interjecting the bank into the middle of this

Prudent advice.
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