Definition

The Uniform Transfer to Minors Act (UTMA) provides a legal way to transfer ownership of funds to a minor while prohibiting the minor’s direct access to the funds. 

The UTMA account is owned by the minor (beneficiary) and controlled by a single custodian. The custodian can withdraw from the account but all funds must be used for the benefit of the minor. The court, not the bank, is responsible for ensuring the proper use of funds. The beneficiary does not sign on the signature card and cannot withdraw funds from the account.

Required CIP, CIF, and Documentation

• Primary & Secondary ID Viewed for Custodian
• Social Security Number for Custodian & Minor
• W8-BEN (Non-Resident Alien Only)
• ChexSystems Inquiry, if applicable
  
  No specific documentation is required to name a custodian. The individual becomes the custodian by assuming responsibilities under statute, by signing the signature card for an account with the name of the statute in the account title. The custodian can designate a successor custodian. A successor custodian assumes responsibility for the account upon the death of the original custodian.  

Tax Identification Number (TIN)

Use the beneficiary’s social security number (SSN) for IRS reporting.

Account Titling

To title the account, do the following: 

1. Title the account in the minor's name and list the custodian's name. {Client's name} displays in the Customer Name field. 
2. In the Additional Name 1 field enter one of the following: 
   • Beneficiary FLUTMA (Florida)
   • Beneficiary GUTMA (Georgia)
   • Beneficiary ALUTMA (Alabama)
3. In the Additional Name 2 field, enter the name and designation of the custodian (for example: {Name of custodian} Custodian).

Ownership Requirements

• Only one custodian 
• The custodian is the only signer on the signature card 
• Signature card with the custodian's signature above his/her name in the Signatures section
• Custodian's verification of the information under the Backup Withholding Certifications section, certifying the SSN of the beneficiary

Signature Card Example