Tax consequences of liquidating a utma dating database example
She is the beneficiary and I, the parent, am the custodian.
She turns 18 (age of majority in CA) and starts college in 2 months.
The income of a custodial account is taxed to the child.In all cases his widow (his second wife) is the trustee on the account, and the children gain control of the account at age twenty-one.What are the legal or financial consequences, if any, of the trustee spending funds from the account before the child is age twenty-one for the child's educational expenses?The custodian’s job is to keep it safe and invest it wisely, so that the minor will benefit from it someday.UGMA and UTMA accounts are often used to pay for college, but can also be used for any expense the minor incurs.
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