SIE practice questionmediumAccount Types – Minors and Control
Which statement about a custodial account is correct?
- AThe minor can direct investments at any age
- BThe custodian is the beneficial owner
- CThe minor is the beneficial owner, but not the account manager✓ Correct answer
- DThe account is closed when the child turns 13
Explanation
Why C — The minor is the beneficial owner, but not the account manager
In custodial accounts (UGMA/UTMA), the minor owns the assets but the custodian manages them until majority. The account is not closed at age 13 and the minor cannot manage the account while underage.
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