Why Arizona Limits Each Custodianship to One Minor
This statute keeps things straightforward. A UTMA transfer cannot name multiple children as co-beneficiaries, and two people cannot share the custodian role for the same minor's property. If you want to transfer assets to three grandchildren, you need three separate custodianships, each with its own custodian designation and its own account or title.
A transfer may be made only for one minor and only one person may be the custodian. All custodial property held under this article by the same custodian for the benefit of the same minor constitutes a single custodianship.
A.R.S. § 14-7660The one-custodian rule also simplifies record-keeping and accountability. When questions arise about how the property was managed, there is one person who bears responsibility. There is no ambiguity about who had authority to invest, spend, or distribute the assets.
Practical Considerations for Families
Even though you can only have one custodian per minor, you can make multiple transfers into the same custodianship. A grandparent could transfer securities, cash, and real estate to the same custodian for the same grandchild, and all of those assets would be managed together as one custodianship. This consolidation makes it easier for the custodian to track investments, file tax returns, and manage distributions.
If a family wants different people to manage different assets for the same child, they would need to use a different structure, such as a trust with co-trustees. The UTMA is designed for simplicity, and this single-custodian rule is a core part of that design.
