SIE practice questionmediumAccount Types - Custodial
Which statement is true regarding custodial accounts established for minors?
- AMultiple minors can be named on a single account
- BOnly one custodian and one minor are allowed per account✓ Correct answer
- CThe minor has trading authority
- DThe custodian cannot make investment decisions
Explanation
Why B — Only one custodian and one minor are allowed per account
Under the Uniform Gifts/Transfers to Minors Acts, each custodial account may only have one custodian and one minor. The custodian, not the minor, has trading authority and decision-making power.
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