Washington State Paid Family and Medical Leave Reporting Timeline Changed
March 18, 2019
The Washington State Employment Security Department announced the delay in reporting the first quarter 2019 employer reports and payment submission for Paid Family Leave to July. Employers do not need to submit Q1 payments or reports in April. Instead, employers will submit reports and payments for both Q1 and Q2 during July.
Question of the Week
In a Uniform Transfers to Minors Account , or UTMA, when does the minor get access to the funds? At 18? 21? 25?
Responsibility for transferring the funds is up to the custodian, not the credit union. If the custodian fails to transfer the property, the minor needs to petition the court to direct the custodian to turn over the property, not the credit union.
In Washington, the custodian of a UTMA should transfer the funds to the minor or to the minor’s estate upon the happening of a specific occurrence. If the UTMA was created through a gift, or specifically called out in a will or trust, the transfer should occur when the minor reaches 21 years of age. If, on the other hand, the UTMA was created because of the decision of someone acting as a fiduciary (like a personal representative) or the decision of an obligor (a person who owes a liquidated debt to a minor), the transfer should occur when the minor reaches 18 years of age. Lastly, the transfer should occur upon the death of the minor if not before (meaning that the minor’s heirs will inherit the property outright, not subject to the custodian’s control).
In addition, when the account is first being set up, the person giving the money can extend the custodianship so that the minor does not have direct access to the funds until he or she reaches 25 years of age (or upon death), with a few exceptions. First, an extension of the custodianship is valid only if the transfer creating custodianship is made on or after July 1, 2007. Further, an extension is not possible if the UTMA is created by a will or trust that specifically provides otherwise. If the UTMA was created by an obligor, the person nominating the custodian gets to choose to extend the custodianship, not the obligor. If there is no custodian, the court establishing the custodianship may extend the custodianship if it determines that doing so would not be contrary to the minor’s interest.
For Oregon UTMA accounts, the custodian should transfer the account to the minor when the beneficiary’s attainment of 21 years of age with respect to custodial property transferred under ORS 126.816 or (2) The beneficiary’s attainment of 18 years of age with respect to custodial property transferred under ORS 126.822 .
In Idaho, the custodian will transfer the account to the minor upon the minor turning 21 with respect to property transferred under 68-804 or 68-805 or 18 years of age, with respect to property transferred to under 68-806 or 68-807.
National Credit Union Administration (NCUA)
NCUA released its 2018 annual report.
Consumer Financial Protection Bureau (CFPB)
CFPB released the 18th issue of their Supervisory Highlights. This quarters highlights focus on Automobile Loan Servicing, Deposits, Mortgage Servicing, and Remittances.
Financial Crimes Enforcement Network (FinCEN)
FinCEN issued advisory FIN-2019-A001 which covers the FATF updated list of jurisdictions with strategic AML and combatting the financing of terrorism deficiencies.
Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of March 15. The last update prior to this was March 11.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.
Posted in Compliance.