My son has an UTMA account. I put my sister's name on the account as custodian to protect it. She told me she would never touch it. She has taken out a large portion of it and not given it to my son or used it for him in any way. Is this illegal? My son is a minor.
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We suggest that you contact an attorney to advise you on your options. Each state has its own version of the Uniform Transfers to Minors Act (or Uniform Gifts to Minors Act in one or two of the states). The model wording for the UTMA laws requires that the custodian maintain records of all custodial property and make them available to the minor's parents or the minor if at least fourteen years old.
There is also a provision in the model language that allows the transferor (the person creating the UTMA custodianship by transferring assets to it), an adult member of the minor's family, or the minor (if fourteen or older) to ask the court to remove the custodian for cause and designate a successor custodian. The same group of persons can also ask the court for an accounting by the custodian.
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We suggest that you contact an attorney to advise you on your options. Each state has its own version of the Uniform Transfers to Minors Act (or Uniform Gifts to Minors Act in one or two of the states). The model wording for the UTMA laws requires that the custodian maintain records of all custodial property and make them available to the minor's parents or the minor if at least fourteen years old.