First, we have to assume that the "pay on death" instruction on the account is legally binding. For it to be legally binding, the minor would have to have the legal capacity to open the account (or someone else to have the legal capacity to open it on the minor's behalf) and to designate it as payable on death. Both of those questions depend on state law. For example, in Oklahoma, the Uniform Transfer to Minors Act (UTMA-OK) permits the transferor (the person making the transfer to the minor under the UTMA-OK) to designate an individual to whom the property is to be transferred if the minor dies before the property is to be released to the minor's direct control.
The second assumption is that the minor has died. That's because the individual named as a "pay on death" beneficiary has no access to or ownership interest in the account unless the minor dies. To determine the answer to your question, then, you will need to consult an attorney conversant with the state laws governing the account.
Published on BankingQuestions.com 10/03/07
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First, we have to assume that the "pay on death" instruction on the account is legally binding. For it to be legally binding, the minor would have to have the legal capacity to open the account (or someone else to have the legal capacity to open it on the minor's behalf) and to designate it as payable on death. Both of those questions depend on state law. For example, in Oklahoma, the Uniform Transfer to Minors Act (UTMA-OK) permits the transferor (the person making the transfer to the minor under the UTMA-OK) to designate an individual to whom the property is to be transferred if the minor dies before the property is to be released to the minor's direct control.