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<<The funds can be used for ANY purpose so long as the minor does not later challange the usage >>

My understanding has always been that the UGMA money can not be used to pay for things that are normally a parent's responsibility - food, clothing , shelter, medical care. It can be used for music lessons, camps, private schools, college,etc. The reason there's a custodian is to decide how to use the money, not the child. The parent can fund the IRA as long as the amount is not more than the earned income for the child.
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