The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/could-a-person-make-an-argument-that-paying-back-30477065.aspx

Subject:  Re: Kids, UTMA accounts, feuding parents Date:  1/10/2013  7:27 AM
Author:  irasmilo Number:  117337 of 121219

Could a person make an argument that paying back child support with money in a UTMA account FBO the minor(s) in question....benefits the minor?

It's a legal, not a tax question, but I sure hope not. The whole idea of child support is to have the noncustodial parent contribute financially to the support of the child. Tapping the child's UTMA account to come up with the money runs contrary to the whole concept.


Phil is right, it's a legal question. I'm not an attorney, but my understanding of UTMA is that nothing can remove the obligation of the parent to provide the basic needs of food, clothing, and shelter. Court ordered child support meets that obligation. UTMA funds can be used for anything else that benefits the UTMA beneficiary; luxury items, recreation programs, a car, etc.

Ira
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us