Two signatures on UGMA/UTMA account?

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Question:

We have a customer who wants to open an account under the Uniform Gifts to Minors Act. They want to require two signatures to withdraw any funds from this account. Is this legal?

Answer:

I don't have wording for Massachusett's old UGMA statute (we've adopted the Uniform Transfers to Minors Act), but my guess is that it's pretty much the same in this one aspect.

The UTMA statute here in Massachusetts (MGL Ch. 201A) only allows one custodian for one beneficiary. There is no provision in the law for permitting the custodian to share responsibilities or authority. There's also nothing permitting the minor to authorize transactions.

Therefore, although you should check the applicable statute in your state, I believe that the account cannot have a two signature requirement.

First published on BankersOnline.com 12/06/04