Answer:
Answer by Andy Zavoina:
You should check with your state's laws for any variance. Texas allows a custodian for UTMA accounts and a substitute custodian may be named to replace them if needed.
From 141.011 of the Texas Property Code: A transfer may be made only for one minor, and only one person may be the custodian.
Answer:
Answer by Mary Beth Guard:
If you're talking about a situation where a court has appointed a guardian for a minor, then you can simply follow the court order, whether there is a single guardian or two guardians. Read the court order carefully to determine whether co-guardians must act together, or if they can act independently.
If you're talking about an account for a minor set up under the UTMA, the standard or "uniform" version of the Uniform Transfers to Minors Act ("UTMA") allows only one custodian, but since the successor custodian is authorized to act any time the original custodian is unable or unwilling to do so, that doesn't pose much of a problem.
As Andy noted, however, you'll need to check your own state's law. Even if you have the UTMA, your legislature may have adopted some unique twists.
One more point. The custodian is not the owner of the funds in a UTMA account. The minor is considered the owner and the minor's TIN is used.
First published on BankersOnline.com 8/6/01
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