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Custodial Account Closing: Can either parent close the account?

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Question: 
I had a request to close a custodial account the other day that came from the childs father. My problem is, the only authorized signer on the account in question is the childs Mother. My initial response was to say no but i wanted to seek a second opinion. If it makes any difference, we are talking about illinois law.
Answer: 

I assume the account was set up under the Illinois Uniform Transfers to Minors Act. If so, "no" was an excellent answer.

Your institution has a contract with the custodian. The child is a third party beneficiary of that contract and the legal owner of the funds on deposit. The father is not in the picture. (Generally, parental relationships alone do not bestow power over a minor's funds.)

Even if the father had been named the successor custodian (permissible under Illinois' UTMA), he has no power over the account unless the original custodian dies, resigns or is removed by court order.

First published on BankersOnline.com 11/5/01

First published on 11/05/2001

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