I had a question about UTMA accounts in CALIFORNIA
. Long story short. My dad passed away 5 years ago and left his estate to my 8 year old son who is a minor. The jurisdiction of the case was held in New Jersey because my brother attested my father's will. Therefore, my son was assigned a guardian at litem in NJ to advocate on my sons behalf, to protect my son as the beneficiary
of the will. I've been working closely with Guardian at litem in NJ and we finally sold my dad's house and my son will receive 74,000 to be distributed in an CUTMA account, naming myself as the Custodian of the account as he comes of adult age at 18. I realize that this is his money and as custodian, I am to manage the account in anyway that is to his benefit
until he is 18, so as long as it DOES NOT ACCOUNT FOR MY LEGAL OBLIGATION TO PROVIDE FOR MY SON.
As I have limited understanding of an UTMA custodial account, I did my own research and found what is called the "UTMA regret," reading the pros and cons. I'm thinking about my son's future and I DO NOT want this account to impede on his financial aid eligibility in the future. Also there seems to be something called the "kiddie tax
" or something that I would like you to clarify. Additionally, I was wondering if I could cash out the UTMA account, and put it somewhere else where I am able to withdraw money for his benefit, but I'm not even sure it this is legal? Also, I already opened an UTMA account with my name as custodian with Wells Fargo yesterday at request of my son's Guardian AT Litem. She is depositing the 74,000 tomorrow and I would like to withdraw 20,000 (a big chunk at one time in the next 2 weeks) to help pay for some equipment to accommodate for his disability
that is not covered by his medical
insurance BUT TO ALSO contract a worker to design in our backyard a play area/learning area/play equipment in our new home for him to enhance his learning and also help him cope with some of his symptoms. Right now, its just dirt and he gets sad he cant play outside since its not safe. My dad would have also wanted to give this gift to him if he were alive. Please help me and tell me how I can withdraw 20,000 in the next two weeks and where do I put the money - Do I transfer the money to our joint account? Or What should I do - Can I cash out the UTMA account? Do you recommend this?