Skip to content

MAUTMA Passbook Savings Account

Answered by: 

Question: 
In Massachusetts, can a minor who has turned nineteen, take money from her UTMA passbook savings, or can only the custodian do this, no matter how old the child is?
Answer: 

First, don't assume that attainment of age eighteen is somehow magic with regard to an UTMA. Certain transfers to a custodial estate under the MA UTMA don't expire until age 21. Check out Section 20 of Chapter 201A of Massachusetts General Laws.

Second, it is the responsibility of the custodian to know when a custodianship should be terminated, and to terminate the custodianship and transfer the property in custodianship to the beneficial owner. If a bank permits the beneficial owner to withdraw from the account without the agreement of the custodian, the custodian or other person with an interest could take legal action against the bank.There is a risk to the bank in this, and I would not advise a bank to permit the withdrawal unless ordered to do so by a court. There are legal remedies available to the beneficial owner to force the custodian to surrender the funds if the custodian refuses to do so.

First published on BankersOnline.com 6/15/09

First published on 06/15/2009

Filed under: 
Filed under operations as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics