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Can Parent Open UTMA Using a W-8?

Question: 
If a parent has a SSN and his child is a foreign national (no SSN) can the father open an UTMA account using a W-8?
Answer: 

Answer by Randy Carey: You would first have to check State law to see if this was even allowed.

Answer: 

Answer by Ken Golliher: Look at your state's version of the UTMA and see if it has any restriction regarding citizenship for either the custodian or the minor. The model version of the UTMA has some restrictions regarding residency at the state level, but not citizenship.

If there are no restrictions, you may use the W-8 as you otherwise would on a non U.S. person's account.

Answer: 

Answer by Randy Carey: Also consider the tax reporting requirements coming up for NRA's for the tax reporting year of 2013. If you don't normally bank NRA's you need to consider whether or not you want to develop an interest reporting system for one account.

First published on BankersOnline.com 1/21/13

First published on 01/21/2013

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