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I have set up an ugma/il account for my son some time ago.

Can we use the money...
I have set up an ugma/il account for my son some time ago. Can we use the money to buy hm a car when he turns 16? We would not qualify for financial aid.
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Answered in 2 minutes by:
6/9/2013
Chris T., JD
Chris T., JD, Lawyer
Category: Family Law
Satisfied Customers: 4,829
Experience: I have assisted many customers and clients with their family law questions and I'm experienced in family law litigation.
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texlawyer :

Good afternoon. I'll be assisting you with question.

texlawyer :

Unfortunately, no. Money in a UGMA may only be used by the minor once he reaches the age of majority. The only exception that is if the minor begins higher education before they reach the age of majority. In that instance, it can be used with the consent of the custodian (you).

texlawyer :

However, since he's 16, the money can't be used to purchase a car.

texlawyer :

Once he does turn 18, however, it can be used for whatever purpose he wants. Any money he takes out will be taxed at his marginal rate, which would likely be low.

Customer: Makes sense and as I expected. Thank you. All set.
texlawyer :

Glad to help.

texlawyer :

Sorry I couldn't give you better news.

texlawyer :

Can I do anything else for you?

Chris T., JD
Chris T., JD, Lawyer
Category: Family Law
Satisfied Customers: 4,829
Experience: I have assisted many customers and clients with their family law questions and I'm experienced in family law litigation.
Verified
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Chris T., JD
Chris T., JD
Chris T., JD, Lawyer
Category: Family Law
Satisfied Customers: 4,829
4,829 Satisfied Customers
Experience: I have assisted many customers and clients with their family law questions and I'm experienced in family law litigation.

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