We believe that it would be a best practice to update your terms and conditions to ensure that customers agree that the bank will comply with the Uniform Transfers to Minors Act’s terms. We are not aware of any specific requirements for account disclosures in the Act (though it does specify that accounts are titled “as custodian for ………….. (name of minor) under the Illinois Uniform Transfers to Minors Act,” 760 ILCS 20/10(2)).

However, UTMA accounts differ in many ways from trust and joint accounts, and therefore the bank’s joint account or trust disclosures most likely are not sufficient. While your UTMA account disclosures do not have to detail the legal obligations of a custodian under the Act, they should disclose any restrictions that may apply to the custodian or beneficiary’s use of the account.