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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.
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