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Should a Non Guardian Parent Have Bank Account Access for Their Minor's Inheritance?
Anonymous2 views2 answers
I am the Executor to my mother's estate in which (by will stipulations) I gave my deceased brother's inheritance to his 2 children. I have deposited their inheritance into a minor's savings account which is locked until they turn 18.
Their mother would like to know the bank details of her children's accounts, in case, she says, anything should happen to me. I have given her the bank name, not the account numbers. I told her the info would be found with my will in THAT event. She is not a legal guardian to this inheritance, therefore I am wondering the appropriateness - legality - and caveats of this request. Thank you!
You would be well advised to study ORS chapter 126 for your new duties as a custodian. A parent actually has some interest is what is going on, despite not being a "legal guardian to this inheritance" as you have stated. ORS 126.842 discusses your duties as a custodian. Of interest is subpart 5, shown here:
ORS 126.842 (5) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the beneficiary's tax returns, and shall make them available for inspection at reasonable intervals by a parent or legal representative of the beneficiary or by the beneficiary if the beneficiary has attained 14 years of age.
You mentioned that the account was "locked" until the children turn 18. Take a look at ORS 126.849. You'll find that "locking up" the funds is not quite the standard. You, in your sole discretion as custodian, can get to the money and use it for the benefit of the children. You could also be forced to use the money on the children before they turn eighteen (keep reading ORS 126.849 for more about that).
There is a lot to read in that ORS chapter about being an UTMA custodian. Your questions may change as you work through that statute. Your exact question about whether you should provide the bank account number to the mother, well you can easily get different answers from different attorneys on that question. I don't see it as a risk because the mother won't be able to get to the money, even knowing the bank account number.
At the end of your "term" as a custodian, you want there to be sufficient records to prove that everything you did was on the up-and-up. ORS 126.842(5) shows that even along the way to the end of your term, you have a duty to show that you are doing your job properly.
It surprising to me that Oregon doesn't have any cases on some of the statute above (by "case" I am referring to a lawsuit that gets appealed). As an optimist, I believe that is because the UTMA custodians of the world are in their position of power precisely because of the love and affection that they bestow on the children under their care. Good luck with your role as custodian.
I strongly recommend that you have a consultation with an attorney who practices this kind of law. consultation is not very expensive and legal fees can be paid from the children's account. Your probate attorney should also be able to help.
