Under what circumstances may a husband and wife both serve as custodians for a minor’s account?

Under what circumstances may a husband and wife both serve as custodians for a minor’s account?

• A. Under no circumstances
• B. If the minor gives written consent
• C. If both husband and wife agree
• D. If the account has a market value of at least $15,000

Answer: (A)

The correct answer states that under no circumstances may both a husband and wife serve as custodians for a minor’s account. In custodial accounts, the law generally designates one individual as the custodian for the minor. This is based on the principle that a single custodian is responsible for managing the assets in the account until the minor reaches the age of majority. Allowing both parents to serve as custodians could lead to confusion about decision-making responsibilities and could complicate the management of the account. This framework is part of the Uniform Transfers to Minors Act (UTMA), which governs how custodial accounts for minors function. It is designed to provide clarity, accountability, and simplicity in the management of a minor’s assets. While the other potential options might seem plausible, they do not adhere to the established rules regarding custodial accounts. For instance, the idea that written consent from the minor could change custodial responsibilities does not align with the legal structure of these accounts, which emphasizes a singular custodian. Similarly, mutual agreement between the parents or any conditions tied to market value do not apply; custodianship is independent of such factors.

The correct answer states that under no circumstances may both a husband and wife serve as custodians for a minor’s account. In custodial accounts, the law generally designates one individual as the custodian for the minor. This is based on the principle that a single custodian is responsible for managing the assets in the account until the minor reaches the age of majority. Allowing both parents to serve as custodians could lead to confusion about decision-making responsibilities and could complicate the management of the account.

This framework is part of the Uniform Transfers to Minors Act (UTMA), which governs how custodial accounts for minors function. It is designed to provide clarity, accountability, and simplicity in the management of a minor’s assets.

While the other potential options might seem plausible, they do not adhere to the established rules regarding custodial accounts. For instance, the idea that written consent from the minor could change custodial responsibilities does not align with the legal structure of these accounts, which emphasizes a singular custodian. Similarly, mutual agreement between the parents or any conditions tied to market value do not apply; custodianship is independent of such factors.