Liquidating utma

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If you are lucky, a modest effort to project the future will steer you toward one of the first two rules of thumb.

The father testified that the parties intended to put money aside for the children’s education but he was unaware that it was a UTMA account., 2008 WL 3892154 (Ohio App., check Ohio Supreme Court Rules for reporting of opinions and weight of legal authority, 2008), it was held that the trial court committed reversible error when it included the value of the UTMA accounts in its division of marital assets. The Court concluded that the father had no donative intent and therefore there was no gift.Rule-of-thumb 3: If the child is not currently subject to the kiddie tax, but would be if all appreciation in the UGMA/UTMA were recognized each year for taxes, a projection exercise may be necessary.Explanation: Unfortunately, the projection will not be easy to do with any level of precision.Should an existing UGMA/UTMA be converted to a 529 plan?The answer will usually depend on whether or not the child is exposed to the insidious "kiddie tax." Here are the rules of thumb that will make it easier to make the proper decision.

For example, in Illinois a minor is defined as a person under 18, and a person who is 18 is of legal age for all purposes .

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