Elimination of 1040A/1040EZ and FAFSA

[cshell2]

I’m trying to learn the UTMA laws. It sounds like they don’t have to distribute until 21. Is it still the asset of the child at 18 as far as FAFSA goes even if the grandparents decide to hold onto it until 21?

Although the statutory age of majority is 18 for most other purposes, the Uniform Act sets the mandatory age for distributions from custodial accounts at 21. In a handful of states (for example, in California), you can take action to delay it until 25, while others allow you to provide for distributions earlier – typically at 18.