2 comments on “When can my child get the money in the UTMA Custodial Account I Created?

  1. My father was the custodian for my daughter’s 2 utgma accounts. Accounts opened in 1989. There were 2 utgma accounts 1 at mfs and another at alliance. The broker of record is a wells fargo branch mgr in jonesboro, ar. The mfs utgma acct assets were held at wells fargo the alliance account was held at alliance w/broker # and branch # listed. In January 2011 wells fargo contacted child (my daughter) because she was over 21 and utgma account needed to be liquidated OR Transferred into a regular mutual fund account becase child was over 21. The account was liquidated at request of child but custodian did not approve of liquidation and because child was age of majority and laws of utgma account states that upon age of majority account is no longer controled by custodian but is controlled by child.

    THE SITUATION IS THE FOLLOWING (this is where i need guidance) the 2nd account at alliance mutual funds received a request from custodian (my father) to liquidate account …even though my daughter was over21 and should have had full control of the account , alliance proceeded w/liquidation at request of custodian (my father) and check was sent to his address in my child ‘s. Name and custodian’s name. I believe that alliance should not have liquidated acct n issued the check because my child was over21 and after age of majority custodian has NO control of this account which is stated in laws of utgma accounts. Upon research check was sent to custodian and deposited in his personal bank account. Check was issued in both child n custodian ‘s name… Custodian forged my daughter’s name n deposited in his personal bank account. WHAT IS CHILD’s recourse on this account? Is alliance obligated to reimburse child for value of account? Because they (alliance and/or broker) acted on my father’s instructions even though he legally had no ability to access account because my daughter was over majority age.. My father forged paperwork to gain assets … I believe illegally. Now irs is billing child for capital gains taxes because account was in her social security number the custodian illegally liquidated….what should we do ???? sue alliance and broker of record at wells fargo. This is a 93a litigation which gives child $$$$ x3 . Both x3 alliance and wells fargo? What should we do (mom of child which is now 28 yrs old) do with my father/her grandfather because this is terrible situation and my dad (child’s grandfather) will deny it n place blame with his wells fargo broker. Alliance is pulling tape of phone call where account was liquidated… It is either my dad or the broker of record requesting the liquidation!!! CAN I ASK FOR EVERYONE ‘s guidance on what to do and who is liable for reimbursement of value of account to my daughter!!!! Obviously my dad was wrong but instead of dealing with him which would be very uncomfortable…can i sue wells fargo AND alliace for value of account x3 and they’ll deal with my father???? Because of family situation it would be easier to go after broker/wells fargo AND ALLIANCE mutual fund corporation and let them go after my dad if i can get restitution/reimbursement for my daughter because they acted WF N ALLIANCE illegally liquidated her ugma account??? HELP ME…NEED EVERYONE ‘s Advice!!!! 617.466.0060 is home number n Email is [email protected]. I look forward to all info from everyone!!! Thanks!!!!

    1. First, thank you so much for posting to The Living Together Law Center blog.

      Second, we can’t give you legal advice in response to your inquiry. Without dispensing legal advice, though, your daughter who is over 21 might have a claim against both the custodian. Whether she has a claim against the banks you mentioned is fact specific and your daughter should contact a lawyer about the possibility of holding them liable. A regular consultation with an attorney is the best road to take at this point.

      It’s a very difficult situation and everyone here at the Living Together Law Center can certainly sympathize with the difficulties this is creating for you and your family.

Leave a Reply

Your email address will not be published. Required fields are marked *