FINRA Securities Industry Essentials Exam (SIE) SIE Question # 50 Topic 6 Discussion
SIE Exam Topic 6 Question 50 Discussion:
Question #: 50
Topic #: 6
A grandfather establishes a Uniform Transfers to Minors Act (UTMA) custodial account for his grandson and appoints an attorney as custodian. Which of the following individuals owns the account?
In a UTMA account, the minor is the legal owner of the account. The custodian (in this case, the attorney) manages the account until the minor reaches the age of majority specified by state law.
C is correct because the grandson (the minor) is the account’s legal owner.
A is incorrect because the attorney is the custodian, not the owner.
B is incorrect because the grandfather established the account but does not own it.
D is incorrect because the parent does not have ownership unless explicitly named as the custodian.
[Reference: SIE Study Guide, Chapter 9: Custodial Accounts, , ]
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