Legal Question in Business Law in California

Re: custodial acct.

If the account was opened in a state which has an age of majority of 21, and that is how the insurance contract is held, your son may need to wait. However, he might be able to assign his rights like to a company that buys future interests - like A G Wentworth?

Re: custodial acct.

You'll have to go to court on a Motion requesting court approval of what you want done. If serious about doing so, and if the case is in SoCal, feel free to contact me.

Re: custodial acct.

The California Uniform Transfers to Minors Act is found in the Probate Code, starting at section 3900.

If the gift(s) or transfer(s) to the minor were made under the Uniform Gifts (or Transfers) to Minors Act of California, California law will apply. The statements from the institution holding the funds should indicate something like "UGMA-CA" that tips off the applicable law.

The custodial assets become the property of the former minor when he or she reaches the age of majority, and the custodian loses all authority under the UGMA or UTMA - unless the original gift specified a different age at the time it was made. The age at which the custodianship expires may not be greater than 25. See Probate Code section 3920.5

Section 3914 of the Probate Code is entitled "Use of custodial property" and seems to authorize the custodian to use his or her judgment to expend custodial funds for the minor's benefit. I suggest reading this section carefully, maybe discussing it with a local lawyer with trust and probate experience. I think you'll find out it's OK to use custodial funds for the beneficial owner's education.

You'll need to have yourself named as successor custodian in order to tap the funds. This probably is going to require a petition to the superior court in your county under Probate Code section 3918. The minor himself can be the petitioner if he's at least 14. See 3918(f), (g) and (h).

There does not seem to be a petition form, so this would probably have to be prepared by a lawyer.