Checks payable to a minor

Answered by:

Question:

If a check is made payable to the minor or the custodian on behalf of the minor, can the custodian cash it?

Answer:

No. The check should be deposited to an account of the minor or a custodian account for the minor, such as a UTMA account. Cashing the check for the custodian or depositing it to the custodian’s personal account would put the bank on notice of a breach of fiduciary duty by the custodian under section 3-307 of the Uniform Commercial Code.

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