Welcome and thanks for your question!
UGMA accounts are the assets of the minor.
You, as custodian of the account, do not have to pay an taxes on the income. Your grandson, however, does, if the income is significant enough.
What is significant in terms of dollars. ??? The gain in his account is approx. 12000.00
The IRS requires minors to pay taxes if they have investment income of more than $1,900.
I apologize - that should say $950.
The IRS taxes dependent's investment income over $1,900 at the parents' rate.
So, with a gain of $12,000, a tax return will need to be filed on behalf of your grandson.
Thank you Danielle rally appreciate your kind assistance. Have a nice week end.
You're welcome. Have a wonderful weekend!