Hi and welcome to our site!Because your daughters are over 21 - you are not the custodian anymore - and they may full rights to use their accounts. If that are simple UTMA accounts - they may use funds are they want without any limitations. Funds may be used for educational purposes or any other purposes.The only tax consequences are related to earnings credited to these accounts. For instance if there was interest income credited to accounts - it will be reported to account owners and they must include that amount on their individual tax returns. There are no consequences for you.
However - if that are not simple UTMA accounts - but educational accounts which allow to defer tax liability - the tax treatment is different. In this case they may avoid any tax liability if distributed amounts are used for qualified educational expenses.So - I suggest you to verify if these are special educational account - Qualified Tuition Program (QTP) accounts or Coverdell Education Savings Accounts (ESA).
Hi Lev, thanks for the prompt and substantive reply. For some reason Fidelity still shows me as the Custodian on their accounts even though they are both over 21. I will have to double-check with Fidelity. And I was not aware there was a distinction among UTMA accounts. Thanks again, Leslie