| Legally, if the older son is not yet 21, now is the time to deplete that UGMA account. And do the same for the younger boy, too. You can pay yourself back for any expenses specifically for the benefit of the child (music lessons, new baseball cleats, private school tuition, etc.). Once the money is back in your hands you can control its distribution.
If the older boy has reached age 21, it is legally his money.
Ethically, I would find it hard to keep any of the children's money which they contributed to the UGMA account eg. earnings or gifts. |