Legal Question in Wills and Trusts in Texas
Uniform Gift to Minor Act-Texas
We funded a UGMA account in Texas in 1990 when the age at which our son would receive the assets was set at 18. I believe in 1995 the age was raised to 21. We are concerned that he is not mature enough to manage the assets when he soon turns 18. Can anyone (custodian, donor) simply elect to use the newer 21 year age, and if so how does one go about it?
1 Answer from Attorneys
Re: Uniform Gift to Minor Act-Texas
Since this UGMA account was funded with gifts, the custodian (I assume you) can keep the account going until the beneficiary (your son) turns 21. In a custodial account such as this, the beneficiary can't make any withdrawals without the custodian's authorization. There should be no checks or debit card for such an account, so the only way to take money out should be to go down to the bank, or possibly to write a letter. So, you simply don't authorize him to withdraw it until he's 21. The bank should not allow him to take any of the money unless you are with him and say OK. When he turns 21, he can give the bank proof of this, and they should give him the balance.
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