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Author: FoolNBlue Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Unknown Accounts Date: 7/20/2011 5:50 AM
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I just found out about an account opened under the UTTMA for my wife when she was a minor (now 27) -though I don't think she has control over it as my MIL still appears as the custodian on the account. All I have a a few random statements I was given by my MIL (not known for her keen organizational skills). It appears that taxes (would be owed on the income each year (by my wife) in the past that we didn't know it existed and I have no idea what the cost basis.

Anyone know of a plain language explanation of what to do when you find out about "lost" (in this case unknown) assets and how to treat them once discovered. The total value is under $2K which really makes this just a hassle not worth the work...wouldn't be so bad if there was another comma and we found out about the mythical "rich uncle."

Thanks.

FNB
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113771 of 121095
Subject: Re: Unknown Accounts Date: 7/20/2011 8:06 AM
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I just found out about an account opened under the UTTMA for my wife when she was a minor (now 27) -though I don't think she has control over it as my MIL still appears as the custodian on the account.

I've never heard of a UTMA account that can't be moved into the beneficiary's name at majority, which is well in your wife's rear view mirror. Step one is to do that, at which point she'll have access to whatever information she can glean. I wouldn't worry about unreported income since the IRS will be in touch if there's a problem. It may be easy to find out basis once she knows what's in the account.

Phil
Rule Your Retirement Home Fool

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Author: FoolNBlue Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113772 of 121095
Subject: Re: Unknown Accounts Date: 7/20/2011 5:13 PM
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Thanks Phil,

After looking/thinking today, I think my MIL's difficulty in "giving" it to my wife is that she no longer has legal control as you implied. I'll have my wife contact them and get a statement or 1099 for 2010 -and any other basis info. Hopefully we can liquidate this and move on... I have a feeling that any capital "gain" will be negative so I may just liquidate and not bother with claiming it -I have enough carry over losses to last another 5 years anyway!

It's really frustrating as it seems my in-laws have done a lot with good intentions but the $ is low and the hassle can be high.

FNB

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Author: JeanDavid Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113773 of 121095
Subject: Re: Unknown Accounts Date: 7/20/2011 5:18 PM
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It's really frustrating as it seems my in-laws have done a lot with good intentions but the $ is low and the hassle can be high.

Good intentions. My grandmother gave me 10 shares of American Airlines back in about 1952 when I graduated from high school. I had the certificate for about 10 ears and sold it I do not recall if it even went up in the interval, but if it did, it was not by much. I suppose it could have been worse: Capital airlines or Mohawk airlines perhaps?

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Author: reallyalldone 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: 113774 of 121095
Subject: Re: Unknown Accounts Date: 7/20/2011 5:30 PM
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After looking/thinking today, I think my MIL's difficulty in "giving" it to my wife is that she no longer has legal control as you implied.

It's a little different situation but I've been told my son is the one who has control of the custodial issue after reaching the age of majority. He's the one who lets me off the hook as custodian(if only I can get him to the brokerage) on both his taxable and his Roth accounts. Your MIL may not have the control she thinks she has.

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Author: JeanDavid Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113775 of 121095
Subject: Re: Unknown Accounts Date: 7/20/2011 5:52 PM
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I am custodian of a UGMA for a friend of mine. She is 14 now and my hope is she uses it for college expenses. Here in NJ, I have to turn it over to her when she is 21. There are some rules that would permit me to give some to her earlier than that, but I hope not to.

When the time comes, do I just notify my broker that it is hers? I assume she needs to open an account there (unless she wants it all out in cash). Assumning she has an account at the time, do I just do a transfer from her UGMA to her cash account? Or can she get title to the account that is now titled UGMA FBOmyFriend?

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113776 of 121095
Subject: Re: Unknown Accounts Date: 7/20/2011 6:15 PM
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I am custodian of a UGMA for a friend of mine. She is 14 now and my hope is she uses it for college expenses. Here in NJ, I have to turn it over to her when she is 21. There are some rules that would permit me to give some to her earlier than that, but I hope not to.

When the time comes, do I just notify my broker that it is hers? I assume she needs to open an account there (unless she wants it all out in cash). Assumning she has an account at the time, do I just do a transfer from her UGMA to her cash account? Or can she get title to the account that is now titled UGMA FBOmyFriend?


All she needs to do is present proof of identity and age to the broker and the account will be retitled in her name. The broker may not even have to change the account number.

Ira

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Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 113777 of 121095
Subject: Re: Unknown Accounts Date: 7/20/2011 8:34 PM
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All she needs to do is present proof of identity and age to the broker and the account will be retitled in her name. The broker may not even have to change the account number.


I had a UGMA account that my dad had set up, and when it dawned on me that I should change it to my name, probably when I was about 29 or 30, all I had to do was send proof of identity and age as Ira noted, and the account was retitled.

As rad noted, the MIL has no control over the account once the daughter has reached age of majority, and it is not up to MIL to 'give' the account to daughter as the account has always belonged to daughter. Daughter just needs to call the broker and have it retitled. There is nothing required from MIL and no involvement at all on her part.

My kids have UGMA accounts for which I am the custodian. They are 20 years old, and one of these days, we'll all get around to retitling things, but no one seems to be in much hurry to do that. At this point, they still like mom to do all their accounting, and as I like to do it, it works for us. I figure everything will get retitled when they graduate college and start to keep all their own books.

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