We recommend notifying the beneficiaries of your UTMA accounts when they reach the age of majority, which may be 18 or 21 years of age depending on the type of UTMA account. If a beneficiary asks for the funds to be transferred to a new account, we recommend entering into a new account agreement with the beneficiary, disclosing and binding them to the terms applicable to the new account.

The Illinois 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 we believe this transfer would require notification.

Custodianships created under Sections 5 or 6 of the Illinois UTMA terminate when the minor attains the age of 21, and custodianships created under Sections 7 or 8 of the Illinois UTMA terminate when the minor attains the age majority in Illinois, which is 18 years of age. Consequently, we recommend reviewing which section of the law your UTMA agreements were created under to determine whether a beneficiary should be notified when they turn 18 or 21 years of age.

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;

(3) the minor's death.”)

• Thornhill v. Midwest Physician Ctr., 337 Ill. App. 3d 1034, 1052 (2003) (“In Illinois the age of majority is 18 years old.”)