Can a business entity be the custodian of an UTMA account ?

By Dennis Gregor posted 03-04-2020 13:45

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Recently 4 minor children were beneficiaries of a Trust Funds for their education. The trust specifically appoints a Legal Fiduciary by name to be the custodian and not the mother. The legal Fiduciary wants the business entity,which is a LLC , to be the custodian and not him individually. As far as I know only a person can be a custodian for an UTMA account. Any help would be appreciated.

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Timothy Turner, CExP™, EA

09-14-2021 15:58

I would have to suggest looking at the specific State's UGMA/UTMA statutes. For example, in TX where I am located, the statues only provide for individuals/persons to be custodians for UTMA...but in some instances, a trust company could serve as custodian verses an individual. The statues do not specify the entity type for the trust company (e.g. corporation, partnership, etc)

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