Trading, Accounts & Prohibited ActsQuestion 239 of 398
In an UGMA or UTMA custodial account, who has the legal authority to make investment decisions while the beneficiary is still a minor?
a.The minor beneficiary
b.The broker-dealer's compliance department
c.The custodian named on the account
d.Both parents jointly, regardless of who is custodian
Explanation
The custodian manages the account for the benefit of the minor until the minor reaches the age of majority set by state law. There can be only one custodian and one minor per UGMA/UTMA account, and the assets are an irrevocable gift to the minor.
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