[CLBS] RE: Uniform Transfer to Minors Act

[Alan Cameron]

Heather,
Transfers into a UTMA account are irrevocable gifts to the minor (I.C. 68-804); UTMA custodians are required to transfer custodial property to the beneficiary at either age 18 or age 21 depending on the circumstances of the gift (most gifts into a depository account will come within the age 21 termination provision).  During the minority of the child, the custodian has no ownership rights in the account.  See, I.C. 68-813.  Accordingly, if the child is no longer a minor the assets in the account should have already been transferred to them and the trust terminated.  Even if that has not happened, the custodial parent has no beneficial interest in the funds in the UTMA and therefore the account should not be part of the BK estate.
  


Alan D. Cameron
President/CEO
Idaho Credit Union League
2770 Vista Avenue
P.O. Box 5158
Boise, ID 83705-0158
800-627-1820
208-343-4841
Fax: 208-343-4869
acameron at idahocul.org
Online at http://www.idahocul.org


 
 

-----Original Message-----
From: clbs-bounces at admws.idaho.gov [mailto:clbs-bounces at admws.idaho.gov] On Behalf Of Heather Conder
Sent: Thursday, July 19, 2012 2:12 PM
To: clbs at admws.idaho.gov
Subject: [CLBS] Uniform Transfer to Minors Act

Is an account under the Uniform Transfers to Minors Act part of the estate?

Account was set up years ago for a minor.  No contributions have been made since 2009.  Would a chapter 7 trustee be able to liquidate the account?  Child is no longer a minor.

If it is part of the parent's estate, any suggestions on exemptions?

Heather L. Conder
1501 Tyrell Lane
P.O. Box 2730
Boise, ID 83701-2730
(208) 383-0090
Fax: (208) 383-0412


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