Q: Must Payable of Death Funds Be Made Under WUTMA for Minor Beneficiaries?
A: Yes. Payment to a beneficiary who is a minor P.O.D. must be done under the Wisconsin Uniform Transfer to Minors Act (WUTMA) per Wisconsin Section 705.04.
WUTMA accounts are governed by Wisconsin chapter 54 and require a single custodian. If a custodian is not named, or is deceased with no successor custodian, then in most situations, the procedure under section 54.888 must be followed. Generally speaking, in such a situation, if the minor has attained the age of 14 he or she may appoint a custodian within 60 days.
If there is no custodian or successor custodian and the minor is not 14 or did not appoint a conservator within 60 days of the custodian's death, an individual must petition the court for appointment as custodian.
Because the law requires P.O.D. funds to a minor to be paid under WUTMA, WBA recommends that banks encourage their customers who make such designations to indicate a custodian and potentially even a successor custodian upon designation.
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.