Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
Can a payable on death (POD) beneficiary be named on an UTMA account? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

Can a payable on death (POD) beneficiary be named on an UTMA account?

—

by

No, the Illinois Uniform Transfers to Minors Act (UTMA) does not allow for the naming of a POD beneficiary. Rather, the UTMA directs the custodian of the UTMA account to transfer the custodial property to the minor’s estate upon the minor’s death.

For resources related to our guidance, please see:

  • Illinois UTMA, 760 ILCS 20/21(a) (“The custodian shall transfer in an appropriate manner the custodial property (to the extent that it has not been used pursuant to this Act) to the minor or to the minor’s estate upon the earlier of: (1) the minor’s attainment of 21 years of age with respect to custodial property transferred under Section 5 or 6; (2) the minor’s attainment of majority under the laws of this State other than this Act with respect to custodial property transferred under Section 7 or 8; or (3) the minor’s death.”)
  • Illinois UTMA, 760 ILCS 20/2(6) (“‘Custodial property’ means (i) any interest in property transferred to a custodian under this Act and (ii) the income from and proceeds of that interest in property.”)