In 1971, Harry Gordon turned over $40,000 to his son, Murray Gordon. Murray opened two $20,000...

 

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In 1971, Harry Gordon turned over $40,000 to his son, Murray Gordon. Murray opened two $20,000 custodial bank accounts under the Uniform Gifts to Minors Act for his minor children, Eden and Alexander. Murray was listed as the custodian of both accounts. On January 9, 1976, both accounts were closed, and a single bank check representing the principal of the accounts was drawn to the order of Harry Gordon. In April 1976, Murray and his wife, Joan, entered into a separation agreement and were later divorced. Thereafter, Joan, on behalf of her children, Eden and Alexander, brought suit against Murray to recover the funds withdrawn in January 1976, contending that the deposits in both accounts were irrevocable gifts. Murray contended that the money was his father's and that it was never intended as a gift but was merely a means of avoiding taxes. Decide. [ Gordon v. Gordon, 419 N.Y.S.2d 684 (App. Div.)] In 1971, Harry Gordon turned over $40,000 to his son, Murray Gordon. Murray opened two $20,000 custodial bank accounts under the Uniform Gifts to Minors Act for his minor children, Eden and Alexander. Murray was listed as the custodian of both accounts. On January 9, 1976, both accounts were closed, and a single bank check representing the principal of the accounts was drawn to the order of Harry Gordon. In April 1976, Murray and his wife, Joan, entered into a separation agreement and were later divorced. Thereafter, Joan, on behalf of her children, Eden and Alexander, brought suit against Murray to recover the funds withdrawn in January 1976, contending that the deposits in both accounts were irrevocable gifts. Murray contended that the money was his father's and that it was never intended as a gift but was merely a means of avoiding taxes. Decide. [ Gordon v. Gordon, 419 N.Y.S.2d 684 (App. Div.)]

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The Uniform Gifts to Minors Act allows gifts and transfers to minors including cash to be made by opening a custodial account with a banking instituti... View the full answer