Q: Can a minor deposit their paycheck in a WUTMA account?
A: No. Only funds that are gifts or transfers made under the Wisconsin Uniform Transfer to Minors Act should be deposited to a WUTMA account.
The topic of WUTMA accounts continues to be a common issue among questions received by WBA’s legal call program. Often, a minor, or the custodian, seeks to deposit non-WUTMA funds into a WUTMA account. This is not appropriate. Only funds transferred under WUTMA should be deposited in a WUTMA account. Furthermore, because WUTMA accounts are managed and controlled by the custodian, the minor would not have access to the funds deposited via paycheck.
It is not the responsibility of the bank to monitor the type of funds deposited into a WUTMA account. This is the responsibility of the custodian. While the bank has no duty to monitor a WUTMA account for appropriate deposits, if the bank becomes aware that inappropriate funds, such as a minor’s paycheck, is being deposited in a WUTMA account it should not be permitted in order to avoid any unnecessary disputes, complaints, or complications that may arise.
For more information on WUTMA accounts and answers to other frequently asked questions please see the Special Focus Article from the April 2017 WBA Compliance Journal.
Note: The above information is not intended to provide legal advice; rather, it is intended to provide general information about banking issues. Consult your institution's attorney for special legal advice or assistance.