Tom established a bank account for his daughter Mary under the Uniform Gifts to Minors Act. Tom named himself the custodian. Later, Tom had a serious disagreement with Mary and ordered the bank to transfer the money in that account to a similar account maintained in the same bank for Tom's son Ed. The bank must:

Question

Quizplus · Accepted Answer

The custodian of a Uniform Gifts to Minors Act account has a fiduciary duty to act in the best interest of the minor beneficiary. In this case, transferring the funds from Mary's account to Ed's account would clearly not be for Mary's benefit, and therefore the bank should refuse Tom's order.

Tom Established a Bank Account for His Daughter Mary Under