What is the best way to set up a savings account for an infant? Parents always want to set up an account for their child, under the child's social security number with them as a joint signer. Is the UTMA the best choice?
Question: Exactly how should an UTMA account be titled? We've had a lot of questions about this, and it isn't spelled out in our new accounts manual.
Under UTMA regulations it was my understanding that in order to use a UTMA account as collateral for a loan we needed some sort of proof that this money was to be used to benefit the minor. Is this correct? If so, how can we be sure that the loan proceeds are being used for the minor?
Can a parent open a savings account for their minor child using the child's social security number as the primary, with the parent as the guardian? How would you title this account? Or does the bank have to open a UTMA account, and if so, why?
We open all minor accounts under the UGMA. We have an account where the child is now 19 years of age. Her father, the custodian, has closed the account and placed the funds in a regular account with just his name. What is our responsibility in monitoring how these accounts are maintained. Can the minor once they reach legal age, close the account with the custodian's permission? What rights does the child have once they reach legal age?