SIE practice questionmediumCustodial Accounts – Gift Irrevocability
When a gift is made to a minor’s custodial account, what is the status of that gift?
- AReturnable for emergencies
- BRevocable by the donor
- CSubject to approval by both donor and custodian
- DIrrevocable✓ Correct answer
Explanation
Why D — Irrevocable
Gifts to UGMA and UTMA accounts are irrevocable and cannot be returned. The custodian manages assets but cannot reverse the gift.
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