Finra Exam Series-6 Topic 5 Question 89 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 89
Topic #: 5

Which of the following statements regarding both a Uniform Gifts to Minors account (UGMA) and a Uniform Transfers to Minors account (UTMA) is false?

AThere can be only one custodian named on the account.

BThe account must be established in the name of one minor child only.

COnce established, the account is irrevocable.

DThe assets must be re-registered in the minor child's name when the child turns 18.

Show Suggested Answer

Suggested Answer: D

The false statement regarding both a UGMA and a UTMA is that the assets must be re-registered in the minor child's name when the child turns 18. The rule differs between the two types of accounts. The UGMA requires that the assets must be re-registered when the child reaches the ''age of majority,'' as defined by the state, and the definition differs among states. Under the UTMA, the transfer of the account can be delayed until the minor child has reached the age of 25.

by Devorah at Sep 13, 2024, 01:53 PM

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Walker

1 months ago

I'm pretty sure the account has to be established in the name of one minor child only. Trying to sneak in multiple kids would just be asking for trouble.

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Yvonne

3 days ago

B) The account must be established in the name of one minor child only.

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Cornell

12 days ago

A) There can be only one custodian named on the account.

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Herminia

1 months ago

Ha! I bet the custodian wishes they could just keep the money for themselves. But nope, gotta hand it over to the kid. That's the law for ya!

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Mabel

1 months ago

I'm not so sure about that. Isn't the whole idea of these accounts to transfer assets to the minor child? Wouldn't that mean the assets need to be re-registered in their name eventually?

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Bette

1 months ago

Hmm, I think option C is the correct answer here. Once the account is established, it becomes irrevocable. Isn't that the whole point of these types of accounts?

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