Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: JeanDavid Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 125003  
Subject: UGMA withdeawal: Is this the right board? Date: 9/4/2013 3:31 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I am custodian for a UGMA account (a cash account, not an IRA or anything, at my brokerage house) for the benefit of a friend of mine. She will be 17 very soon, and will start college next year. This is in New Jersey where I must give her control of the account when she is 21, but I can take money out exclusively for her benefit before that. I have in mind using most of it for college tuition.

Do I just instruct the brokerage house to sell shares (if I have not done so already) and send me a check? Or what? I suspect if I ask them, that is what they will do, but that might not fully comply with the law. Should they make the check payable to my friend? Or to her college? Need I fill out any particular forms for the IRS. I sure would not want the capital gains that would appear to get onto my income tax form.

Or should I have posted this somewhere else?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.