The custodian died on a TXUTMA account. Can the funds in the account be used for the funeral even though they belong to the minor?
For the benefit of our readers, the abbreviation TXUTMA indicates that the account was established under the Texas Uniform Transfer to Minors Act, legislation adopted by almost all of the states that provides a way for property of all types to be held by a custodian for the benefit of a minor. Property transferred into such a custodianship can only be used for or on behalf of the minor. That provision would not permit using the funds to pay for the custodian's funeral, even if the custodian was an adult sibling or parent of the minor.
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
For the benefit of our readers, the abbreviation TXUTMA indicates that the account was established under the Texas Uniform Transfer to Minors Act, legislation adopted by almost all of the states that provides a way for property of all types to be held by a custodian for the benefit of a minor. Property transferred into such a custodianship can only be used for or on behalf of the minor. That provision would not permit using the funds to pay for the custodian's funeral, even if the 