MAUTMA Passbook Savings Account

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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