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Custodian/UTMA Check-Where to Deposit

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Question: 
If a bank receives a check payable to John Smith ​as Custodian for Jill Smith UTMA​, does the check have to be deposited to an account titled in the same way, ​or can it be deposited to the custodian's account?
Answer: 

If a check is payable to someone in a fiduciary capacity, it should be endorsed as drawn and deposited into an account in the same name.

Theoretically, the fiduciary could endorse the item as drawn then endorse it personally. That would show clearly that they took the money. Arguably, it would put you on notice of the possible breach of trust.

I would not allow it...

First published on 06/11/2017

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