A lot of the comments on here reflect a misunderstanding of just what a UTMA account is, reflect dishonest and unethical behavior and are direct violations of the act. UTMA statutes are based on a model act from the Uniform Law Commision. States may make small modifications to comport with their existing laws or items such as the age of termination. You can check your state's UTMA statute, but these issues are not likely to vary.
Terri-bh wrote: ↑Thu Dec 13, 2018 12:23 pm
Case #2--if you're making the contributions--
you never have to tell them about the account at all. Just wait until you're ready to hand it over to them. Or heck, put it in your will. "BTW, your retirement account is fully funded--here's the bank/acct number."
it was your money--they may legally have access to it, but I don't see why morally you can't just not tell them about it.
You do have to tell their parents until the age of majority and
them after the age of 14
"Section 12(e)". It
"was" your money, but contributions are
irrevocable gifts
"Section 4" the second they happen. It is now
their money that you have a
fiduciary responsibility to them for.
SECTION 4. TRANSFER BY GIFT OR EXERCISE OF POWER OF APPOINTMENT.
A person may make a transfer by
irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to Section 9.
SECTION 12. CARE OF CUSTODIAL PROPERTY.
(e) A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and
shall make them available for inspection at reasonable intervals by a parent or legal representative of the minor or
by the minor if the minor has attained the age of 14 years.
SECTION 13. POWERS OF CUSTODIAN.
(b) This section does not relieve a custodian from
liability for breach of Section 12.
SECTION 20. TERMINATION OF CUSTODIANSHIP.
The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of:
(1) the minor's attainment of
21 years of age* with respect to custodial property transferred under Section 4 or 5;
(2) the minor's attainment of [majority under the laws of this State other than this [Act]] [age 18 or other statutory age of majority of Enacting State] with respect to custodial property transferred under Section 6 or 7; (custodianships as substitutes for conservatorships) or
(3) the minor's death.
*Or as designated by your state's statutes.