Customer AccountsQuestion 73 of 110
When the beneficiary of a custodial account reaches the age of majority set by state law:
a.The custodian may continue managing the account indefinitely
b.The account must be liquidated and the proceeds donated
c.Ownership reverts to the original donor
d.The assets must be re-registered in the former minor's own name and control passes to that person
Explanation
Custodianship ends at the state's age of majority or termination age, and the property is retitled in the now-adult beneficiary's name with full control over it. The custodian's authority is not open-ended. Because the original gift was irrevocable, neither the donor nor anyone else can reclaim the assets.
Law Reference: Uniform Transfers to Minors ActPractice all 110 questions free — no signup required.
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