Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
This question might be more appropriate for a lawyer, but I'd like to have any thoughts. I want to liquidate my 2 year old's UTMA and invest the proceeds into a 529 Plan. I know that there a certain prohibitions against doing so since the account monies belong to my son and by investing into a 529 plan I'm affecting the ownership/control of those monies. My question is as follows: Am I breaking the law, i.e. committing a crime, if I proceed as outlined, or am I simply creating the possibility of my child suing me for some sort of breach of fiduciary duty as custodian of the UTMA?

P.S. I know that under some state 529 plans, I can make my child the account owner and probably avoid this legal issue. However, I don't want the child the account owner and this is one of the reasons I want out of the UTMA. Thanks.
Print the post  

Announcements

Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
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.