Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

Finra SIE Exam - Topic 4 Question 3 Discussion

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?
C) Grandson
A) Attorney
B) Grandfather
D) Grandson's parent

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?

Show Suggested Answer Hide 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

Limited Time Offer

25%

Off

Get Premium SIE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Erinn
9 months ago
Nope, it's all about the grandson once he reaches the age!
upvoted 0 times
...
Mireya
9 months ago
I thought the grandfather would have some ownership too?
upvoted 0 times
...
Solange
10 months ago
Wait, is the attorney really just a custodian?
upvoted 0 times
...
Mariann
10 months ago
Totally agree, it's for the minor's benefit!
upvoted 0 times
...
Stevie
10 months ago
The grandson owns the account, not the attorney.
upvoted 0 times
...
Magnolia
10 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.
upvoted 0 times
...
Tasia
10 months ago
Wait, does the attorney have any ownership rights? I feel like I might have mixed that up in my notes.
upvoted 0 times
...
Alline
11 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.
upvoted 0 times
...
Clorinda
11 months ago
I think the grandson owns the account since it's a UTMA account, but I'm not entirely sure.
upvoted 0 times
...
Rikki
11 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.
upvoted 0 times
...
Jarvis
11 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.
upvoted 0 times
...
Rasheeda
11 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.
upvoted 0 times
...
Kris
11 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.
upvoted 0 times
...
Brittney
11 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.
upvoted 0 times
...
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.
upvoted 0 times
Gail
1 year ago
Grandson
upvoted 0 times
...
Yuki
1 year ago
Grandson
upvoted 0 times
...
Alberto
1 year ago
Grandson
upvoted 0 times
...
Rodolfo
1 year ago
Attorney
upvoted 0 times
...
...
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?
upvoted 0 times
...
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.
upvoted 0 times
Tawanna
1 year ago
B) Grandfather
upvoted 0 times
...
Shizue
1 year ago
C) Grandson
upvoted 0 times
...
...
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.
upvoted 0 times
Arlen
1 year ago
Grandson is the actual owner of the account.
upvoted 0 times
...
Thurman
1 year ago
Attorney owns the account as the custodian.
upvoted 0 times
...
...
Thomasena
2 years ago
I see your point, but I still think the grandson ultimately owns it.
upvoted 0 times
...
Brandee
2 years ago
But the attorney is the custodian, so maybe they own it?
upvoted 0 times
...
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?
upvoted 0 times
...
Wava
2 years ago
The grandson owns the account, of course! What kind of question is this?
upvoted 0 times
Verda
1 year ago
No, the grandson is the owner, not the grandfather.
upvoted 0 times
...
Blondell
1 year ago
B) Grandfather
upvoted 0 times
...
Tula
1 year ago
Exactly, the grandson is the owner.
upvoted 0 times
...
Terina
2 years ago
C) Grandson
upvoted 0 times
...
...
Thomasena
2 years ago
I think the grandson owns the account because it's for him.
upvoted 0 times
...

Save Cancel