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IRS Levy on Custodian - Hold UGMA Funds?

Question: 
Should the bank withhold funds on an UGMA if the custodians' accounts are levied by the IRS?
Answer: 

Answer by Randy Carey:No, the funds are not the custodian's; they belong to the minor.

Answer: 

Answer by Ken Golliher:Agreed, however, parents oftentimes use these accounts to hide assets from creditors, the IRS, etc. Review the account activity to see if there is evidence that the title is just a sham.

First published on BankersOnline.com 2/15/10

First published on 02/15/2010

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