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?
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