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?

AAttorney

BGrandfather

CGrandson

DGrandson's parent

Show Suggested Answer

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

2 months 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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Gail

20 days ago

Grandson

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Yuki

22 days ago

Grandson

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Alberto

27 days ago

Grandson

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Rodolfo

1 months ago

Attorney

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Tamesha

2 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

2 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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