Who owns the funds in a UTMA account?

minor beneficiary
A UTMA account belongs to the minor beneficiary. The custodian operates as a sort of trustee, with a duty to hold the money for the benefit of the minor. When the minor reaches a certain age, he or she is entitled to receive the balance of the UTMA account.

Who claims the interest on a UTMA account?

Because money placed in an UGMA/UTMA account is owned by the child, earnings are generally taxed at the child’s—usually lower—tax rate, rather than the parent’s rate.

Is Florida a UGMA or UTMA state?

Florida Statute 710.123 (effective July 1, 2015) now permits UTMA accounts created by an individual, or authorized under a will or trust, to continue until the minor attains age 25.

Can a parent transfer money from a UTMA to a UGMA?

The gifts made to a UTMA/UGMA are irrevocable – a child cannot simply return them to the giver. However, a parent is allowed to transfer the funds to another custodial account for the minor’s benefit, such as a 529 college savings account.

Who is the custodian of a UTMA account?

With a UTMA account, you name a custodian – often another family member – to hold the funds for the minor until the minor reaches a designated age.

Can a licensed attorney spend my child’s UTMA money?

A licensed attorney set up several accounts, including a college fund, for his son. When his son went to use it and couldn’t figure out where all the cash was, he sued his dad. His dad not only lost but was carted off to jail for contempt. 3  Look at the case of Carlson v.

How old do UTMA accounts have to be in Florida?

Florida is among a few states that allow UTMA accounts to remain intact until the minor reaches age 25, but only if the transferor clearly expresses an intent for the account to continue for the longer period.

What makes a UTMA account a custodial account?

A Uniform Transfers to Minors Act (UTMA) account is a custodial account established for the benefit of a minor. The property in an UTMA account belongs to the minor but is controlled by a custodian until the UTMA account terminates.

What did my son do with my UTMA money?

The son used some of the money to pay for the daughter’s medical and dental bills, among other things. When his daughter sued him for raiding her accounts, he lost because it is considered the duty of the parent to pay for those things as a matter of basic child support.

What can be transferred to a UTMA account in Florida?

Just about any type of asset titled in Florida (or assets situated elsewhere if a Florida resident) can be transferred to an UTMA account – cash, stocks, bonds, and mutual funds, life insurance, intellectual property, and title to real and personal property are all eligible.

A licensed attorney set up several accounts, including a college fund, for his son. When his son went to use it and couldn’t figure out where all the cash was, he sued his dad. His dad not only lost but was carted off to jail for contempt. 3  Look at the case of Carlson v.