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A grandfather establishes a Uniform Transfers to Minors Act (UTMA) custodial account for his grandson and appoints an attorney as custodian. Which of the following individuals owns the account?
Suggested Answer: C
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In a UTMA account, the minor is the legal owner of the account. The custodian (in this case, the attorney) manages the account until the minor reaches the age of majority specified by state law.
C is correct because the grandson (the minor) is the account's legal owner.
A is incorrect because the attorney is the custodian, not the owner.
B is incorrect because the grandfather established the account but does not own it.
D is incorrect because the parent does not have ownership unless explicitly named as the custodian.
35 comments · newest first
ER
Erinn
11 months ago
Nope, it's all about the grandson once he reaches the age!
MI
Mireya
11 months ago
I thought the grandfather would have some ownership too?
SO
Solange
12 months ago
Wait, is the attorney really just a custodian?
MA
Mariann
12 months ago
Totally agree, it's for the minor's benefit!
ST
Stevie
1 year ago
The grandson owns the account, not the attorney.
MA
Magnolia
1 year ago
I’m pretty confident the grandson is the owner, but I should double-check the specifics of UTMA accounts just to be safe.
TA
Tasia
1 year ago
Wait, does the attorney have any ownership rights? I feel like I might have mixed that up in my notes.
AL
Alline
1 year ago
I remember a similar question where the custodian didn't own the assets, so I’m leaning towards the grandson as the owner here.
CL
Clorinda
1 year ago
I think the grandson owns the account since it's a UTMA account, but I'm not entirely sure.
RI
Rikki
1 year ago
Hmm, this is a tricky one. I'm going to carefully re-read the question and think through the UTMA rules before marking my answer.
JA
Jarvis
1 year ago
I'm pretty confident the answer is C - the grandson. The UTMA account is set up for the benefit of the minor, so the grandson would be the owner, even though the attorney is the custodian.
RA
Rasheeda
1 year ago
I'm a little confused on this one. The question mentions the grandfather establishing the account, but doesn't specify who the actual owner is. I'll have to review my notes on UTMA accounts.
KR
Kris
1 year ago
Okay, I've got this. The UTMA account is established by the grandfather, so the answer has to be either the grandson or the attorney as the custodian.
BR
Brittney
1 year ago
Hmm, this seems like a tricky one. I'll need to think carefully about the UTMA rules to figure out who actually owns the account.
KA
Kate
2 years ago
If the attorney owned the account, that would be like having the fox guard the henhouse! Clearly, the grandson is the rightful owner here.
GA
Gail
2 years ago
Grandson
YU
Yuki
2 years ago
Grandson
AL
Alberto
2 years ago
Grandson
RO
Rodolfo
2 years ago
Attorney
TA
Tamesha
2 years ago
The answer is definitely C) Grandson. The attorney is the custodian, not the owner. I'm pretty sure the grandfather wouldn't just give the account to the attorney or the parent, right?
DO
Dorothy
2 years ago
This is a no-brainer! The grandson owns the account, and the attorney is just there to manage it. I bet the grandfather is laughing at us for even considering the other options.
TA
Tawanna
2 years ago
B) Grandfather
SH
Shizue
2 years ago
C) Grandson
MI
Micheline
2 years ago
The grandson's parent doesn't own the account, they're just the parent. The grandson is the one who owns it, with the attorney as the custodian.
AR
Arlen
2 years ago
Grandson is the actual owner of the account.
TH
Thurman
2 years ago
Attorney owns the account as the custodian.
TH
Thomasena
2 years ago
I see your point, but I still think the grandson ultimately owns it.
BR
Brandee
2 years ago
But the attorney is the custodian, so maybe they own it?
PE
Pearly
2 years ago
Hmm, I'm pretty sure the custodian, which is the attorney, technically owns the account. But the grandson is the beneficiary, right?
WA
Wava
2 years ago
The grandson owns the account, of course! What kind of question is this?
VE
Verda
2 years ago
No, the grandson is the owner, not the grandfather.
BL
Blondell
2 years ago
B) Grandfather
TU
Tula
2 years ago
Exactly, the grandson is the owner.
TE
Terina
2 years ago
C) Grandson
TH
Thomasena
2 years ago
I think the grandson owns the account because it's for him.