Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 3
I am neither a tax accountant nor an attorney.

The age at which a UGTMA must be turned over varies from state to state. Here in New Jersey, it is 21.

I set up a such an account for a friend of mine soon after she was born. It is my understanding that I could take money out of it at any time (she is not related to me) provided it was for her benefit (not mine), so I could not put it in my checking account. I could spend it on things that her parents could not reasonably be expected to pay. For example, instead of paying college tuition that was my intention, I could pay some out for a drug treatment program if she needed it. Fortunately, my friend does not need a drug treatment program, and does need money for college and will surely spend it all before she is 21 on tuition, dorm rent, books, fees, etc.

So first find out if your state requires you to turn over the money at 18, or 21 (or perhaps some other age). Then check with an attorney in your state to see if what other than school expenses you can take the money out for. I do not know anything about Coverdell or College CDs, whatever they are, and I rather suspect that the answers to your questions will depend on the state you are in.
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.