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Custodian Account As CD-Minor Now 21

Answered by: 
Randy Carey

Question: 
Have a custodian acct as a CD (mother custodian for child). The child is now 21 and the mother wants to close the CD and put funds in a trust for the child even though he is twenty one. Does the minor who is no longer a minor have to be present and does the minor acct have to be closed and opened as a trust upon obtaining the trust agreement?
Answer: 

This is a State law issue and the bank should not get embroiled into the middle of this. In Texas: "the custodian shall transfer the custodial property to the beneficiary on the date the beneficiary attains 18 years of age". The custodian has no right to do anything else with the money. As far as I know, this is the same in every State, the only difference might be the age at which this occurs.

First published on 05/11/2015

Filed under: 
Operations
Filed under operations as: 
Minors
UTMA

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