We have an account that was opened as an KYUTMA; however, the child is now almost 20 years old. We have received a levy on the custodian and have sent her a certified letter requesting that she come in to change the account type. We realize that as long as the account is set up as a KYUTMA that we cannot touch the funds. Deposits that are made to the account are made payable to a heating and cooling business (which the bank should not be accepting any way). What do you suggest that we do in order for this account to be closed? The bank believes that the account is being used more for the custodian's benefit than the child's benefit. There is also a debit card that was issued to the custodian. Would it not be okay for the bank to restrict the debit card to get the custodian's attention? Thanks.

You note that the bank should not be accepting checks payable to a business for deposit to a UTMA account. Obviously, that is foolish and it is the root cause of your problem. Allowing those items to be deposited makes your bank complicit in the custodian's use of this account in attempt to defraud creditors and perhaps the beneficiary.

You do not say what methods can be used to access the account in addition to the debit card. I suggest you send the custodian a letter asking the customer to close the account, indicate that all future withdrawals must be in person and, that if the account is not closed by X date, your bank will close it unilaterally. Your check would be payable the way the account is titled, not to the custodian and not to the beneficiary. Your explanation need not be elaborate and you might be wise to just say it's because the child has reached the age where delivery is required by the statute.