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

Under the Uniform Gifts to Minors Act, the custodian manages the account for the benefit of the minor. Therefore, the custodian cannot transfer the funds to another person unless it is clearly for the benefit of the minor. In this case, transferring the funds to a different account for Tom's son would not benefit Mary, and the bank should refuse Tom's order.

Tom Established a Bank Account for His Daughter Mary Under