Go to Jeff Salisbury LWGate Home Page.From: NEGross@aol.com
Subject: Re: persfin-digest V5 #65
Date: Mon, 9 Nov 1998 11:27:40 EST
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In a message dated 98-11-09 11:10:57 EST, you write: << A relative set up UGMA accounts for my sons, 10 and 15, with herself as the custodian. The relative has since passed away. The accounts are in the form of CDs. We have the CDs, but the bank says we can't cash them unless we "petition the court" to be named custodian for my younger son, and unless my older son does his own petition. We live in Massachusetts and the relative lived in Minnesota. The bank is in Minnesota. Which court do we petition and what's the format for doing this? - -- Nancy Slator, neslator@amherst.edu >> Putting aside the legal issue for a moment, this question raises a very important planning issue - the naming of a custodian for UGMA/UTMA accounts. One should NEVER have the person that establishes the account (ie contributes the money) also be the custodian. If they are one and the same,the account balance goes into the estate of the custodian (if he/she dies before the minor reaches the age of majority). So in addition to the problem Nancy is facing, there could be estate tax problems if Nancy's relative left a sizeable estate. - -
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