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Home >> Special Situations >> Minors
Confusion with Custodial Account
I have an account under a custodian. The minor is now 21 years old, and the bank refused to withdraw monies without a court order. The court, however, says the minor is now an adult and there is no need for a court order. What should I do?
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 The various states' versions of the Uniform Transfers to Minors Act (or Uniform Gifts to Minors Act) all state that it is the custodian's duty to transfer control of such an account to the beneficial owner, namely, the former minor. If the custodian fails or refuses to do so, the bank may decide to simply hand control of the account over to the former minor, but it would do so without any legal mandate. Many banks will refuse to act without the custodian's instruction or specific direction from a court, because the banks are concerned the custodian might have a legal claim. Ideally, the former minor can convince the court to issue an order to the custodian to turn the funds over, or to the bank to do the same.
Published on BankingQuestions.com 11/05/08
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