Is there a gift tax occurred if we change the UTMA account to a joint account with my daughter ?
Country relating to Question: United States
State (if USA): Washington
How old is your daughter and how much is in the account?
Does it make difference. My daughter is now 23 years old . The amount is about $160,000
Since your daughter is over age 21 she has the right to withdraw all of the funds from the account. If she elects to move the funds out of the account to a bank or brokerage account jointly titled in both of your names, then that doesn't consist of a gift until you withdraw funds from the account. If you withdraw more than $13,000 in one year then she has made a taxable gift to you and she must file a gift tax return. However, she will not actually have to pay gift tax as there is a credit available to offset the gift tax. The credit permits an individual to make excess lifetime gifts of up to $5.12 million (in 2012) before gift taxes actually have to be paid.Bill41066.1323935185
EA, CEBS - 32 years experience providing financial advice