Topic: Uniform Transfers to Minors Act (UTMA)
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At what age may the bank release funds to the owner on an Illinois Uniform Transfers to Minors Act (UTMA) account, if the custodian dies or just does nothing with it?
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The age at which an UTMA custodianship terminates depends on how the custodianship was created. 760 ILCS 20/21. In general, an UTMA deposit account created by gifting money to a minor will terminate at age 21. However, there are some circumstances in which other types of UTMA custodianships will terminate at age 18. The details…
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For purposes of the Illinois Uniform Transfers to Minors Act (UTMA), when does a custodianship terminate?
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The age at which an UTMA custodianship created under the Uniform Transfers to Minors Act terminates depends on how the custodianship was created. 760 ILCS 20/21. In general, an UTMA deposit account created by gifting money to a minor will terminate at age 21. However, there are some circumstances in which other types of UTMA…
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What paper work does a customer need to bring into the bank to open a UTMA? Can anyone just state that they wish to open an UTMA and do so?
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We believe that some documentation is necessary to open an account under the Illinois Uniform Transfers to Minors Act (UTMA). If a person is acting as custodian of a minor’s property, they should have been nominated as custodian in writing, with the custodian’s name listed, with the words “as custodian for ……………….. (name of minor)…
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Do you know if there is an Illinois Law that prohibits charging a service or maintenance fee on a minor account?
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We believe that the general rule would apply, which is that a bank may charge any account fees agreed to by the customer, even if the customer is a minor. (Section 5e of the Banking Act states that “[n]otwithstanding the provisions of any other law in connection with extensions of credit” banks may charge any…
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When a beneficiary of a UTMA account becomes an adult, can the beneficiary withdraw all the funds, or would the custodian’s signature still be required?
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The Illinois Uniform Transfers to Minors Act places the duty of closing out the account on the custodian, who “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.” 760 ILCS 20/21. The bank may…
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For minor accounts, how can we determine whether it’s appropriate to open a UTMA account versus an ordinary deposit account?
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A trust under the Uniform Transfers to Minors Act may be appropriate for setting aside money for a child, as it provides a statutory framework for the obligations of a custodian of a minor’s property. However, the decision of whether to set up a trust account, versus an ordinary checking account, should be left to…
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We just started offering Uniform Transfers to Minors Act (UTMA) accounts. Do we need to update our account terms and conditions to reflect this new type of account?
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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…