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#239927 - 09/01/04 08:24 PM CIP/UTMA accts
Anonymous
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We have a situation where we have a trustee removing himself from an utma acct and making himself an owner. Do we need a CIP on him since he was the customer for CIP before? Thanks anyone that can answer my question for me.

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#239928 - 09/03/04 01:48 PM Re: CIP/UTMA accts
Sheryl R Offline
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Sheryl R
Joined: Mar 2001
Posts: 291
Cedar Rapids, IA,
The trustee doesn't own the funds - the minor does. How can the trustee become the owner?

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#239929 - 09/03/04 09:07 PM Re: CIP/UTMA accts
Anonymous
Unregistered

In this case the son owns the funds the mother is the trustee. She is removing herself as a trustee giving him full rights to the account and he is putting her on the account as a joint owner.

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#239930 - 09/07/04 02:59 PM Re: CIP/UTMA accts
Sheryl R Offline
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Sheryl R
Joined: Mar 2001
Posts: 291
Cedar Rapids, IA,
Ok..that makes sense now. If your procedures don't require that you perform CIP on previous customers who are now opening an account, why would this situation be any different? In my own opinion, though what harm would it do to perform CIP now?

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#239931 - 12/02/04 04:49 PM Re: UTMA accts
Anonymous
Unregistered

We offer a savings account just for children, it requires $5.00 to open, however, at a recent Banking seminar it was expressed that if a baby/child cannot sign their name they cannot be a signer on the account but a parent cannot be the owner of our kids club savings account either so a UTMA account should be opened for them but that limits the ability for both parents to sign on the account since UTMA requires one custodian. This has been a dilemma . Most people do not have the required $200.00 to open a regular savings account for their child and a parent cannot be the owner of the kids savings account. How is the UTMA applied to kids savings accounts, or how do you handle two parents wanting to sign on the kids account? Should a separate document be made up naming the second parent as successor custodian or how are other banks handling this situation?

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#239932 - 12/03/04 04:25 PM Re: UTMA accts
Sheryl R Offline
Gold Star
Sheryl R
Joined: Mar 2001
Posts: 291
Cedar Rapids, IA,
I must admit that this doesn't sound right - so maybe I'm confused. Why can't the kid own the funds with the parent as joint owner in the kids club accounts?

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