Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
Ira or any of the other tax pros: Any chance that the "put it in their name" was simply a nominee holding title, but not equitable interest, for a minor child, so that the change of name from parents to OP is only a change of record owner, but no change in real owner, and thus not a taxable event?

I doubt that conversion of UGMA or UTMA accounts to the now majority age child trigger a taxable event.

While it's possible that the OP doesn't understand exactly how the shares/account were titled, I've never heard anyone describe a UGMA/UTMA account as being in the name of the custodian. The child is still the owner of record in a UGMA/UTMA account and is responsible for any taxes due on income/gain.

If it were a UGMA/UTMA, you are correct that removing the custodian from the account is not a taxable event.

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.