A custodial account is an account opened on behalf of a minor child and are opened pursuant to the Uniform Transfer to Minors Act (UTMA). The Uniform Transfer to Minors Act allows parents or others to make an “irrevocable gift” to a minor without needing a court appointed guardian.
Custodial Account Guidelines
- When the account is opened the money is the property of the minor
- The parent/custodian maintains control over the funds until the minor comes of age. For the purposes of the Uniform Transfer to Minors Act, a “minor” is a person under 21 year of age.
- When the minor becomes of age, it is the custodian’s responsibility to remove themselves from the account.
- In all instances the credit union will refer the legal aged account holder back to the custodian if they request withdrawals and the custodial status has not been removed from the account.
- A minimum share balance of $5 is required
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