I set up an account for my young daughter under the Uniform Transfers to Minors Act. I am the custodian on that account. We also have a CD owned by the UTMA account. I need to buy a car and can get a much better rate if I can pledge a CD as collateral. Could I pledge the one that is owned by the UTMA as collateral for my loan?
When funds are set aside under the Uniform Transfers to Minors Act, they are, in essence, given to the child. You can't take a CD owned by someone else (in this case, the child) and use it as collateral for a personal loan made to you, even if you are the custodian.
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When funds are set aside under the Uniform Transfers to Minors Act, they are, in essence, given to the child. You can't take a CD owned by someone else (in this case, the child) and use it as collateral for a personal loan made to you, even if you are the custodian.
