I have a question about UTMA accounts. I recently requested a check to cover some college costs for my 20yr old. The check is made out to myself (as custodian) and also has my son's name on it. However, the bank will not let me deposit it into my wife and I's checking account because my son's name is also on the check.

Any idea if the bank is in the wrong? If not, how do I get around this? Thanks in advance!

It's a liability on the banks end so they won't deposit it. I'd ask the custodian for guidance

Even if he endorses the check?

I have had a similar issue with chase before. I just tried a different branch and they didn't blink and deposited it.

OK, so apparently the bank is just being "petty", at least that is what he person at Fidelity told me (which is where the check came from). Just going to cancel the check and move on.

If your son has also endorsed the check then I would agree they are for sure being petty.

Mobile or atm deposit?

Yeah, it was signed. My wife actually went into the bank to a teller. I think it's time to move to another bank.

It's not your bank lol

I used to get UTMA money for college. The majority of it was in a brokerage account and my mother was listed as custodian.

It's your son's money not yours. You're the custodian of the funds. You're the owner of you and your wife's joint account. Your son is not (I'm assuming) on your joint account where you were trying to deposit the funds.

Open another account in your sons name where you are still listed as the custodian. Or put it in your sons name and he understands where the money fairy (his UTMA account) comes from, the times when the money fairy shows up, and the budget expectations.

Edit... That's how it was in my case. Then at a certain age the custodianship was removed and I had full control of the remaining funds.

What Kenneth said. I had this issue with all three of our children. The bank (locally owned) instructed me to sign the check as I was listed on the check, followed by "custodian" and then deposit it into an account for the child.

Edited to add (after rereading Kenneth's post) the child's account did not show me as custodian. In other words, we did not take it out of one account with me as custodian and put it in another account with me as custodian. The money is the property of the child (hence the G in UGMA or T in UTMA). Once mine reached the age of majority, the accounts were closed (well a couple haven't been, lol) and put in the child's account.

Your bank is correct in not letting you deposit the check in you and your wife's account. They might if your child also signed the back of the check, below your signature, but I would clear that with the bank before trying it.

I also don't believe you are allowed to write a check from the custodial account to reimburse you for amounts you gave to your child regardless of the purpose, ie his/her tuition, living expenses, etc. The payment has to go to the child when they are eligible or directly to provider.

UTMA dollars belong to the beneficiary. When they attain the majority age, which varies by state, he/she can ask for the funds for any reason. And get it.

Forge the signature

This is the problem with UGMA/UTMA. Sounds like a great idea to people when their children are young but when it's time to legally turn the funds over to their 18 year child it doesn't sound so great anymore.

hedge said:

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It's a liability on the banks end so they won't deposit it. I'd ask the custodian for guidance

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Ask himself for guidance?

very Zen

The custodian where the funds are held, let's not be obtuse