Accounts & CustomersQuestion 57 of 125
A custodial account established under the Uniform Transfers to Minors Act (UTMA) has which feature?
a.Two minors may be named as co-owners
b.The custodian owns the assets personally
c.There is one custodian and one minor, and the assets belong to the minor
d.The account can be opened only by a grandparent
Explanation
A UTMA account has a single custodian managing assets for a single minor, and the assets legally belong to the minor. The custodian manages the account for the minor's benefit and must act prudently; control transfers to the minor upon reaching the age of majority set by state law.
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