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Finra Exam SIE Topic 4 Question 3 Discussion

Actual exam question for Finra's SIE exam
Question #: 3
Topic #: 4
[All SIE Questions]

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?

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Suggested Answer: C

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.


by Lauran at Feb 09, 2025, 05:51 AM

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Kate
25 days ago
If the attorney owned the account, that would be like having the fox guard the henhouse! Clearly, the grandson is the rightful owner here.
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Yuki
1 days ago
Grandson
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Alberto
6 days ago
Grandson
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Rodolfo
15 days ago
Attorney
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Tamesha
1 months ago
The answer is definitely C) Grandson. The attorney is the custodian, not the owner. I'm pretty sure the grandfather wouldn't just give the account to the attorney or the parent, right?
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Dorothy
1 months ago
This is a no-brainer! The grandson owns the account, and the attorney is just there to manage it. I bet the grandfather is laughing at us for even considering the other options.
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Tawanna
7 days ago
B) Grandfather
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Shizue
8 days ago
C) Grandson
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Micheline
1 months ago
The grandson's parent doesn't own the account, they're just the parent. The grandson is the one who owns it, with the attorney as the custodian.
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Arlen
27 days ago
Grandson is the actual owner of the account.
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Thurman
28 days ago
Attorney owns the account as the custodian.
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Thomasena
2 months ago
I see your point, but I still think the grandson ultimately owns it.
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Brandee
2 months ago
But the attorney is the custodian, so maybe they own it?
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Pearly
2 months ago
Hmm, I'm pretty sure the custodian, which is the attorney, technically owns the account. But the grandson is the beneficiary, right?
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Wava
2 months ago
The grandson owns the account, of course! What kind of question is this?
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Verda
16 days ago
No, the grandson is the owner, not the grandfather.
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Blondell
17 days ago
B) Grandfather
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Tula
27 days ago
Exactly, the grandson is the owner.
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Terina
1 months ago
C) Grandson
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Thomasena
2 months ago
I think the grandson owns the account because it's for him.
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