Account Types
Which of the following is TRUE about a custodial account under UTMA?
Under UTMA, once assets are transferred to the minor, the gift is irrevocable and the assets belong to the minor. There can only be one custodian, the custodian cannot borrow from the account, and each UTMA account is fo
Complete Analysis & Legal Rationale
Under UTMA, once assets are transferred to the minor, the gift is irrevocable and the assets belong to the minor. There can only be one custodian, the custodian cannot borrow from the account, and each UTMA account is for one minor only with no requirement for equal distributions among siblings.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.