<p>Ex (non custodial parent) had a savings account for S where ex is named as the custodian because S is a minor. He says it wasn’t UTMA account, just a savings account. I don’t know any other details. Anyway, the account was closed this year and he kept the money as cash so S could use it later if need be.</p>
<p>I suppose we are okay if the account was a simple savings account. But if it was in fact a UTMA account, are we in trouble? How can we find out if it was a UTMA account?</p>
<p>If it was a UTMA account there may be some tax issues. UTMA account $$s are only supposed to be spent for the benefit of the minor but not on things that are normal parental responsibilities (clothes, food etc). If it was a UTMA account this could trigger an IRS audit. I don’t know how you tell if it was a UTMA account. I think if a parent was named as custodian then any tax documents would have been in the minors name. We bough some shares for our kids and Dad is the custodian but any 1099s come in the kids name and SSN.</p>