Do UTMA/UGMA rules continue to apply to transferred assets?
We believe so. It is Putnam’s position that the rights and obligations that apply to an UGMA/UTMA custodian and beneficiary outside of the program continue to apply after the assets have been transferred to an account under the program. That means the following: The custodian of the UGMA/UTMA account should be the owner of the CollegeAdvantage™ account The minor under the UGMA/UTMA account should be the beneficiary of the CollegeAdvantage™ account When the minor/beneficiary reaches the age of majority under the applicable UGMA/UTMA statute, the owner should make the assets available to the beneficiary, for example, by distributing the account to the beneficiary or by changing ownership of the account to the beneficiary The beneficiary of the account should not be changed Separate accounts should be established to hold UGMA/UTMA assets (previously held by a custodian) and other non-UGMA/UTMA assets. In that regard, note that accounts established under the Program by UGMA/UTMA custodians
We believe so. It is Putnam’s position that the rights and obligations that apply to an UGMA/UTMA custodian and beneficiary outside of the program continue to apply after the assets have been transferred to an account under the program. That means the following: The custodian of the UGMA/UTMA account should be the owner of the CollegeAdvantage™ account The minor under the UGMA/UTMA account should be the beneficiary of the CollegeAdvantage™ account When the minor/beneficiary reaches the age of majority under the applicable UGMA/UTMA statute, the owner should make the assets available to the beneficiary, for example, by distributing the account to the beneficiary or by changing ownership of the account to the beneficiary The beneficiary of the account should not be changed Separate accounts should be established to hold UGMA/UTMA assets (previously held by a custodian) and other non-UGMA/UTMA assets.
