UTMA Account - Minor Now Adult

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Question:

I have a CD in my name and would like to withdraw funds. However the account was set up when I was a minor under a custodianship agreement. Since I am no longer a minor (I am 23), and the account is in my name, is the bank legally obligated to allow me to withdraw funds without the consent of the custodian? The bank is located in WI Thank you for any help on this subject.

Answer:

You'll want to check the Wisconsin Uniform Transfers to Minors Act for details; however, the general rule is that the bank contracted with the custodian and is answerable only to the custodian.

Unless Wisconsin law differs in this regard, you'll have to either convince the custodian to withdraw the funds and give them to you, or ask the court (usually a probate court matter) to order the bank to pay the funds directly to you. The bank will honor a court order.

Note: I checked the Wisconsin Act, and it appears that there is no provision permitting the bank to pay the account directly to the former minor, absent a court order.

First published on BankersOnline.com 4/4/05