Legal Question in Wills and Trusts in California
I have a check from sale of stock made to me as trustee of my grandsons trust under UTMA CA. Since the check includes the name of my grandson also, the bank will not let me deposit this check unless it's in an account with the same designation. I want to use the money to buy more stock in another company but I'm unable to use this money. I asked the company regarding the purchase of the stock (account is a UTMA account) but they will not accept a third party check. How do I get this money to pay for the stock for him and how am I going to use this money if I'm unable to either deposit it in an account or cash the check?
2 Answers from Attorneys
If the check is made out to you as Trustee of a trust for your grandson's benefit, you must open a trust account, which will require its own tax ID #. If the check is made out to you as custodian under a Uniform Transfer (or Gifts) to Minors Act, you must open an UTMA or UGMA account.
Ms. Cusack is exactly right. You need to open a UTMA bank account to deposit the check. If you don't want to maintain an ongoing UMTA account, close it after you fund the next stock purchase, and then whenever you sell UMTA stock, don't take a check for the money. Leave it in the brokerage account until you buy more stock.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
