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UGMA and UTMA Drill

Dashboard > Client Investment Recommendations and Strategies > UGMA and UTMA > UGMA and UTMA Drill

1.

Pop opened an account for Junior as an UTMA account. The state where the account was opened provides that beneficiaries of UTMA accounts become "of age" at twenty-two. Junior calls the broker on his twenty-second birthday and instructs him to liquidate the account and send him the proceeds. The broker complies with the request. Does the broker have any liability?
- (A)No.
- (B)Yes, because he should have checked with Pop before accepting Junior's instructions.
- (C)Yes, because UTMA accounts remain in fiduciary status until the beneficiary gives the broker proof of age and signs the necessary paperwork.
- (D)Yes, because the assets in the UTMA account do not belong to Junior.

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