Whether the presumed abandonment period for an Illinois UTMA account will be measured from the date on which the minor turns eighteen or twenty-one depends on the way in which the account was funded.

The Illinois RUUPA states that property held in an Illinois UTMA account is presumed abandoned three years after the date on which the custodian is required to transfer property to the minor in accordance with the Illinois UTMA (or the date on which a mailing sent to the custodian of the minor on whose behalf the account was opened is returned undelivered, if later).

Under the Illinois UTMA, the date on which a custodian must transfer custodial property to the minor depends on how the account was funded, except in cases in which the minor dies. The custodian must transfer the custodial property to the minor when the minor turns twenty-one if the property was transferred (1) by a gift or exercise of a power of appointment or (2) under a will, trust, or other governing instrument.

Alternatively, the custodian must transfer the custodial property to the minor when the minor turns eighteen if the property was transferred to a minor as a substitute for a conservatorship (1) by a fiduciary who was prohibited from doing so or a guardian or (2) by another person holding the minor’s property or owing a debt to the minor. (These custodianships terminate at age eighteen because they are substitutes for conservatorships, which would have terminated at age eighteen under Illinois law.)

Additionally, complex timing requirements apply to an Illinois UTMA account if your bank does not send communications to the custodian by first-class mail at least annually. If that is the case, then you must send an email no later than two years after the custodian’s last indication of interest. If your bank does not have the custodian’s email address, is notified that the email was not received, or receives no response within thirty days, then you must promptly contact the custodian by first-class mail. If that mailing is returned undeliverable, the start date for the presumed abandonment period is the later of the return date or the date on which the custodian is required to transfer the property to the minor or the minor’s estate under the UTMA.

For resources related to our guidance, please see:

• Illinois RUUPA, 765 ILCS 1026/15-204(a)  (“Subject to Section 15-210, property held in an account established under a state’s Uniform Gifts to Minors Act or Uniform Transfers to Minors Act is presumed abandoned if it is unclaimed by or on behalf of the minor on whose behalf the account was opened 3 years after the later of:

(1) except as in subparagraph (2), the date a communication sent by the holder by first-class United States mail to the custodian of the minor on whose behalf the account was opened is returned undelivered to the holder by the United States Postal Service;

(2) if a communication is re-sent within 30 days after the date the first communication is returned undelivered, the date the second communication was returned undelivered; or

(3) the date on which the custodian is required to transfer the property to the minor or the minor’s estate in accordance with the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act of the state in which the account was opened.”)

• Illinois Uniform Transfers to Minors Act, 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 Uniform Transfers to Minors Act, 760 ILCS 20/5 (“A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to Section 10.”)

• Illinois Uniform Transfers to Minors Act, 760 ILCS 20/6(a) (“A representative, trustee or other obligor under a governing instrument may make an irrevocable transfer pursuant to Section 10 to a custodian for the benefit of a minor as authorized in the governing will, trust or other governing instrument. The authorization will be presumed unless the transfer is expressly prohibited by or inconsistent with the provisions of the will, trust or governing instrument.”)

• Illinois Uniform Transfers to Minors Act, 760 ILCS 20/7 (“(a) Subject to subsection (c), a representative may make an irrevocable transfer to an adult or trust company as custodian for the benefit of a minor pursuant to Section 10, in the absence of an authorization to do so.

(b) Subject to subsection (c), a guardian may make an irrevocable transfer to an adult or trust company as custodian for the benefit of the minor pursuant to Section 10.

(c) A transfer under subsection (a) or (b) may be made only if (i) the representative or guardian considers the transfer to be in the best interest of the minor and (ii) the transfer is authorized by the court if it exceeds $10,000 in value.”)

• Illinois Uniform Transfers to Minors Act, 760 ILCS 20/8(a) (“Subject to subsections (b) and (c), a person not subject to Section 5, 6 or 7 who holds property of or owes a liquidated debt to a minor not having a guardian may make an irrevocable transfer to a custodian for the benefit of the minor pursuant to Section 10.”)

• Illinois RUUPA, 765 ILCS 1026/15-204(b) (“If the holder does not send communications to the custodian of the minor on whose behalf an account described in subsection (a) was opened by first-class United States mail on at least an annual basis, the holder shall attempt to confirm the custodian's interest in the property by sending the custodian an electronic-mail communication not later than 2 years after the custodian's last indication of interest in the property. However, the holder promptly shall attempt to contact the custodian by first-class United States mail if:

• (1) the holder does not have information needed to send the custodian an electronic mail communication or the holder believes that the custodian's electronic-mail address in the holder's records is not valid;
   
• (2) the holder receives notification that the electronic-mail communication was not received; or
   
• (3) the custodian does not respond to the electronic-mail communication within 30 days after the communication was sent.

(c) If first-class United States mail sent under subsection (b) is returned undelivered to the holder by the United States Postal Service, the property is presumed abandoned 3 years after the later of:

• (1) the date a communication to contact the custodian by first-class United States mail is returned to the holder undelivered by the United States Postal Service; or
   
• (2) the date established by subsection (a)(3).”)