Messed up my son's UGMA account. Help!

<p>We had a very small UGMA account set up when he was a baby. We only funded for a short time and forgot about it. It only has $1200. I totally messed up and didn't send paperwork in on time and the account turned into a regular Mutual Fund account in son's name when he turned 18. Stupid me. Is it better to cash it in? Leave it as is? He earned about $2500 last year working. No other assets in his name.</p>

<p>In what context are you asking this question? Impact on financial aid consideration? An asset is an asset. If the account is “cashed in,” he still has an asset worth the same amount of money. Plus, there are probably capital gains considerations, so whatever you do keep taxes in mind.</p>

<p>It’s your son’s money. Ask him what he wants to do with it.</p>

<p>You can see about changing the ownership to a joint account in your name and his. But he will need to sign off on the ownership change. If you are listed as the taxpayer, it won’t count as his asset. No tax consequences until you sell the funds. I work in a financial advisor’s office and we often change ownership like this because of tax concerns or the parent not wanting an 18 year old to have full control of account.</p>