check payable to custodian

A customer has presented an insurance check made payable to "Miss Smith and Mr. Adams" as custodian for "minor's name" under "State" Uniform Transfer to Minor Act. Would this require an UTMA account for deposit or is this only a style of payment chosen by the insurance company? We are unfamiliar with two custodians being named on an UTMA account.

Thank you.

Whether multiple custodians are allowed is a State law issue.

Look at the UTMA in your state (your profile doesn't indicate which one it is). As noted, some specifically say that only one custodian is permitted.

I suggest you comply with the law, not the check. If your state only allows one custodian, the issue belongs to the insurance company that cut the check in this fashion.

One of the custodians would like to deposit the check into his account instead of opening an UTMA. Should this be allowed?

Only if you want to be sued and owing the minor the value of the check.

(Sound of choking in the background.)

No; you should not allow it. As suggested, your bank could and should be held liable for allowing the custodian to convert the funds to his own use.

Thank you for your reply. Sorry about causing the choking.