I had a UTMA accounts(in the state of Texas)as a minor with a parent as custodian of that account. The funds were not transfered to me when I became 21 as they should have been. The parent instead cashed out the accounts 1 to 3 years after I had turned 21 and made me sign paperwork to place the money in a "joint account" utilizing my SSN but requiring 3 signatures to withdraw funds and effectively manage the account. At that time I had no idea of my rights regarding the matter, and believing that the money would be given over to my control by my 25th birthday as promised, also led to believe that this was the only option I had, I signed. I am now almost 30 years old and have no access to this account which is still under the direct control of the parent and am concerned that it may cause financial problems for me later down the road (IRS, loans, financial assistance, etc.); I'm also concerned that the account can't possibly be managed properly in this fashion. I have verbally asked the parent to either transfer the funds into my name or take my SSN off the account personally over 5 years ago and this was refused stating that I would recieve the money when I turned 25. After I turned 25 I had my broker send the parent forms to transfer the funds into my personal account. The forms were totally ignored and the parent still refuses to relinquish control of the funds. I have verbally asked for an accounting and this was also denied. I don't know what to do. I don't have funds to sue and the account wasn't particularly large the last time I saw a balance ($5-6,000 in 1998-9), but I don't want to be liable for something that I have no control over. Any suggestions or advise would be greatly appreciated. Thanks

1. Even after the minor turns 21, in the state of Texas, the bank does not 'transfer the funds' - the custodian still has transactional authority so that must come from them. Unfortunately you appear to have run into some issues with the account custodians. My best recommendation to you is to talk to an attorney, or legal aid (Which will generally work for those folks who cannot afford an attorney)- when/if these cases are taken to court, I have yet to hear of one that the 'minor' did not win.

Good luck!

Thanks for taking the time to try to answer. I guess I was unclear when I was discussing transfer I was meant by the custodian, as required under Texas Property Code.

You say that the custodian still has transactional authority, does that mean that banks/financial institutions do not have to have consent from the 'minor' after they reach 21 to close the account(s)?

The way the contract is worded, the custodian retains that transactional authority - it is their responsibility to then transfer the funds to the minor when the minor reaches the age of 18, but no later than their 21st birthday. Our contract is with the Custodian, not the minor, so we are unable to recognize the minor - many times we have never met, identified, etc the minor. And from our point of view, situations like this are very few and far between - many times we have authorized the withdrawal by the minor with a signed letter from the custodian - many of our banking centers are in small, rural areas.

As I said earlier, it appears you are an exception in that you have run in to this problem, not that this makes you feel any better.

Some of our other posters may have better advice, but I'm also wondering about the bank that accepted your SSN but where you're not a signer - have you talked to someone at that bank? We would never take someone's social who doesn't bank with us - that seems very strange.

Also, who are the other 2 signers? Have you talked to them?

The truly sad thing is that I am sure this has impacted your relationship with the parent.

2 signers are the parent and their spouse (my stepparent). Tried talking; it does no good, they don't keep their word. The joint account opened after the consolidation of the UTMA accounts from the credit unions is the only one that I know for sure utilizes my SSN. I don't know how Credit Unions are with UTMA accounts, but the UTMA accounts I have for my children at my brokerage firm use their SSN.

The parent did suggest that I give the funds to one of my children "to get it out of my name". (They would have wanted to maintain control of that of course.)First thought on that one was "why on earth would I want to do that to the them?" But it led me to wonder if the parents ever had any intention of relinquishing control of the funds or if they were just using their children's/grandchildren's accounts as tax shelters.

Your right, it cas had an impact on the relationship because I can't understand how a parent could treat their children that way. I know I couldn't do that to mine.

The cynic part of me says to report them to the IRS -

Even if they used your ssn at the CU it still makes no sense - were you not over the age of 21 when this change happened?

I would check with your county commissioners about legal aid - think that is your best bet.

the CUs were the original accounts. that was when i was a minor. Yes, the change to a brokerage account was after I was 21.

Didn't know the county commissioners office handled that sort of thing. Thanks.

I don't know that they do either, but they should be resource for you to point you in the right direction - good luck - feel free to PM and let me know how things work out.

BTW.. I really appreciate your time. Most people I talk to tell me that the account is too small to waste my time on or basically that it's family & I shouldn't "rock the boat". To tell the truth, part of me says the same thing.

The important thing is I just don't want any unnecessary liability!!!

And yes, there are times when I consider reporting them to the IRS, or the SEC, or whomever the authority would be on the matter, but how far would they look into the matter if I have no proof? The parents have all the records. And there's always ... "it's family... you're not supposed to cause waves."

Thanx for all!!