Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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.

Print the post  


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.
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.