Who governs the management of custodial accounts with regard to the transfer of funds from a custodial account to an individual (parental) account?
If by custodial accounts you mean accounts held by a custodian on behalf of a minor under the Uniform Transfers to Minors Act (UTMA) (or in a few states the Uniform Gifts to Minors Act or UGMA), the individual state statute under which the custodial account was established, together with any other applicable state statutes, form the framework for the management of such accounts.
The typical state UTMA provision requires that the custodian deliver or pay funds in the custodial account to the minor or expend them for the minor's benefit. Whether a transfer of funds from the custodial account to an account of the minor's parents would be acceptable depends on the purpose and circumstances of the transfer and the provisions of the specific state's UTMA.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
If by custodial accounts you mean accounts held by a custodian on behalf of a minor under the 