I receive quarterly dividend checks from a stock that my mother purchased for me when I was a minor. The checks have my mom's name, then as custodian for my name. I have been depositing these for several years with no problem but today I was denied. The bank manager told me that I couldn't deposit them anymore unless I opened a second checking account in the same custodial name. Do I have to open a second account to deposit these checks or should I simply change the bearer's name on the stock certificates?
The custodian needs to get those stocks transferred into your name. A lot of people think that such a change is automatic once a minor reaches the age of 21, or 18 or something in between, depending on state law. That's just not true. The custodian controls the account, and is responsible for making such a change.
Opening an account in your mother's name as custodian won't do the trick, although it might solve the problem of depositing the checks. If your mother isn't able to change the ownership on the stock, contact the transfer agent for the corporation and ask for assistance. The certificates will have that information, or you can get it from the corporation's website.
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The custodian needs to get those stocks transferred into your name. A lot of people think that such a change is automatic once a minor reaches the age of 21, or 18 or something in between, depending on state law. That's just not true. The custodian controls the account, and is responsible for making such a change.