POA Makes Withdrawals from PUTMA Account

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Question:

If a POA makes a reportable withdrawal for the custodian on a PUTMA account, we will put the custodian in Section A of the CTR and the POA in Section B. Do we also need to include the beneficiary of the PUTMA in another Section A? We don't know if the money is going to the beneficiary or not.

Answer:

The Pennsylvania UTMA, as is the case with other states, requires that the custodial property be delivered or paid to the minor or expended for the minor's benefit. I believe the bank should assume that the withdrawal is made on behalf of the minor; thus, a Section A entry should be made on the minor, too.

I am concerned that you have asked about a withdrawal being conducted from the UTMA account by an agent (who would correctly be called an "attorney-in-fact," not a POA or power of attorney). It would be extremely rare, and not permitted in most states, for a custodian to grant a power of attorney that would permit someone to execute his custodial responsibilities.

First published on BankersOnline.com 8/23/10