Finra SIE Exam - Topic 4 Question 3 Discussion

Actual exam question for Finra's SIE exam

Question #: 3
Topic #: 4

[All SIE Questions]

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?

AAttorney

BGrandfather

CGrandson

DGrandson's parent

Show Suggested Answer

Suggested Answer: C

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.

by Lauran at Feb 09, 2025, 05:51 AM

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Erinn

4 months ago

Nope, it's all about the grandson once he reaches the age!

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Mireya

4 months ago

I thought the grandfather would have some ownership too?

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Solange

4 months ago

Wait, is the attorney really just a custodian?

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Mariann

5 months ago

Totally agree, it's for the minor's benefit!

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Stevie

5 months ago

The grandson owns the account, not the attorney.

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Magnolia

5 months ago

I’m pretty confident the grandson is the owner, but I should double-check the specifics of UTMA accounts just to be safe.

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Tasia

5 months ago

Wait, does the attorney have any ownership rights? I feel like I might have mixed that up in my notes.

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Alline

5 months 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.

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Clorinda

5 months ago

I think the grandson owns the account since it's a UTMA account, but I'm not entirely sure.

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Rikki

5 months 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.

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Jarvis

5 months 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.

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Rasheeda

5 months 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.

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Kris

5 months 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.

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Brittney

6 months 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.

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Kate

1 year 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.

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Gail

12 months ago

Grandson

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Yuki

12 months ago

Grandson

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Alberto

12 months ago

Grandson

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Rodolfo

1 year ago

Attorney

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Tamesha

1 year 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?

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Dorothy

1 year 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.

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