Guardian Set Up Uniform Gift to Minor As A DDA?

Answered by:

Question:

Can the guardian set up a Uniform Gift to Minors acct as a DDA instead of a savings?

Answer:

Court appointed guardians who know what they are doing do not set up UTMAs. Accounts opened by the guardian should reflect that fiduciary relationship and not confuse the guardian's broad authority with the more limited authority of a UTMA custodian. Unless limited by the court order, a court appointed guardian can open a DDA account in order to make routine payments.

As a complete aside, many banks do not allow UTMA custodians to open DDAs because they are inconsistent with the custodial relationship.

[Editor's Note: One or two states have still not adopted a Uniform Transfers to Minors Act, and retain their versions of the Uniform Gifts to Minors Act. The question and the Gurus' answers are appropriate whether a UGMA or UTMA is involved.]

First published on BankersOnline.com 4/22/13