A UTMA account Question

vballmom
Thu, 31 Mar 2011 12:18:31 +0000

As advised above, you can do a) or c) for any pre-college expenses. If you want the UTMA funds to be used for college, then consider doing:

d) a trustee-to-trustee transfer from the UTMA to a UTMA/529 owned by your son. The title remains the same (child owns the account, parent is custodian until child turns 21 in your state, child is beneficiary). The 529 funds will be invested tax-free and can be used for qualified higher education expenses, including travel to/from college. I believe the new rules allow a laptop purchase as a qualified expense.