Yes, we recommend notifying the beneficiaries of UTMA accounts when they reach the age of majority. As the custodian for a UTMA account, your bank is responsible for transferring property to the beneficiaries after they reach the applicable age of majority. The UTMA requires custodians to “transfer in an appropriate manner the custodial property . . . to the minor or to the minor’s estate” when the minor reaches the age of majority or on the minor’s death, and presumably this transfer would require notification.

Also, we believe that your bank may disclose the source of UTMA account funds to the beneficiary in keeping with its duty to make account records available to the beneficiary, including “records of all transactions with respect to custodial property.”

For resources related to our guidance, please see:

• Illinois UTMA, 760 ILCS 20/10(a) (UTMA property is created by transferring property to “the transferor, an adult other than the transferor, or a trust company” as custodian for the property.)

• 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 [age eighteen] with respect to custodial property transferred under Section 7 or 8; or (3) the minor’s death.”)

• Illinois UTMA, 760 ILCS 20/13(e) (“A custodian shall keep records of all transactions with respect to custodial property . . . and shall make them available for inspection at reasonable intervals by a parent or representative of the minor or by the minor if the minor has attained the age of 14 years.”)