Check Made out to CUST and Minor now Adult

[Pedas2]

What is the name of your state? What is the name of your state? Arizona

If a check is made payable to the order of

"Person X CUST
Person Y
UTMA
Mailing Address of Person X"

and Person Y is no longer a minor, who is legally authorized to deposit the check?

How would a bank know if Person Y is no longer a minor?

 

[adjusterjack]

Why are you making out the check that way?

Is there an UTMA account that the check will be deposited into?

If the check is made out to custodian then the custodian can deposit it. But you'd better make sure that depositing funds after the minor comes of age doesn't trigger tax problems.

 

[Just Blue]

What is the name of your state? What is the name of your state? Arizona

If a check is made payable to the order of

"Person X CUST
Person Y
UTMA
Mailing Address of Person X"

and Person Y is no longer a minor, who is legally authorized to deposit the check?

How would a bank know if Person Y is no longer a minor?

We don't do homework or hypothetical questions.


Px Hx.

 

[Pedas2]

Why are you making out the check that way?

Is there an UTMA account that the check will be deposited into?

If the check is made out to custodian then the custodian can deposit it. But you'd better make sure that depositing funds after the minor comes of age doesn't trigger tax problems.

There is no UTMA account the check will be deposited to. Person X and Person Y have their own separate bank accounts.

 

[Pedas2]

We don't do homework or hypothetical questions.


Px Hx.

Not homework or hypothetical.

 

[Pedas2]

If Person Y goes online to the company's website and requests that dividends be directly deposited into his bank account, would there be a problem with this if the shares still states "Pay to the Order of Person X CUST, Person Y UTMA"?

 

[quincy]

If Person Y goes online to the company's website and requests that dividends be directly deposited into his bank account, would there be a problem with this if the shares still states "Pay to the Order of Person X CUST, Person Y UTMA"?

Yes.

Why isn’t a separate account set up?

 

[Pedas2]

Why are you making out the check that way?

Is there an UTMA account that the check will be deposited into?

If the check is made out to custodian then the custodian can deposit it. But you'd better make sure that depositing funds after the minor comes of age doesn't trigger tax problems.

So even if the minor is no longer a minor on a UTMA account, a custodian can cash the check if the custodian's name is on the check along with the minor who is no longer a minor?

 

[Pedas2]

Yes.

Why isn’t a separate account set up?

I don't know.

 

[quincy]

So even if the minor is no longer a minor on a UTMA account, a custodian can cash the check if the custodian's name is on the check along with the minor who is no longer a minor?

Are you the (now adult) minor or the custodian for the minor’s account? Or are you just curious?

 

[Pedas2]

Are you the (now adult) minor or the custodian for the minor’s account? Or are you just curious?

Just curious.

 

[quincy]

Just curious.

Ah. Well ... there should have been a custodial account set up, with an adult custodian managing the account for the beneficiary minor.

Once the minor became an adult (18 or 21), the UTMA account assets should have been transferred to the now-adult minor and the account closed.

The now-adult minor should speak to the UTMA custodian if there is a problem with transfering assets.

 

[Pedas2]

Ah. Well ... there should have been a custodial account set up, with an adult custodian managing the account for the beneficiary minor.

Once the minor became an adult (18 or 21), the UTMA account assets should have been transferred to the now-adult minor and the account closed.

The now-adult minor should speak to the UTMA custodian if there is a problem with transfering assets.

Thank you for the input. So until that's done, does custodian still have authority to cash checks even though the minor is now an adult?

 

[quincy]

Thank you for the input. So until that's done, does custodian still have authority to cash checks even though the minor is now an adult?

The custodian could only ever use the assets in a UTMA account for the benefit of the minor. It is the minor’s money, managed by the custodian.

The adult-minor potentially could take the check to the bank with proof of date of birth and the bank might cash it. But the custodian could also deposit the check and transfer the funds to the adult-minor.

Again, the adult-minor should speak to the custodian to get all assets transferred.

 

[Pedas2]

The custodian could only ever use the assets in a UTMA account for the benefit of the minor. It is the minor’s money, managed by the custodian.

The adult-minor potentially could take the check to the bank with proof of date of birth and the bank might cash it. But the custodian could also deposit the check and transfer the funds to the adult-minor.

Again, the adult-minor should speak to the custodian to get all assets transferred.

The transfer agent (issuer of check) has a website where one can sell shares, set-up direct deposit, etc.. There is a also a long form to fill out to get the assets transferred/custodian deleted that requires a Medallion signature, etc.. Now adult minor isn't interested in having stock shares. If both custodian and now adult minor both agree to sell shares, who should log-in to transfer agent website to complete this as presumably they will require a tax ID number? Custodian or now adult minor? Once stock shares are sold, can proceeds be directly deposited into now adult minor's bank account?