FAQs: UGMA or UTMA Account

1. My child’s grandmother established the UTMA account. All of the funds were contributed by his grandmother, who also acts as the custodian. Is my dependent child’s financial interest reportable?

Yes. Even though the funds were contributed by, and are currently controlled by, the grandparent, the funds have been irrevocably transferred to your child. Consequently, the contents of the account are considered to be your child’s assets for financial disclosure purposes.

2. What if none of the assets were individually worth more than $1,000 at the end of the reporting period or produced more than $200 during the reporting period?

If each individual asset had a value of $1,000 or less and produced $200 or less in income, you need not report the child’s financial interests in the assets of the account or in the account itself, even if the child’s aggregate interest in the entire account exceeded the $1,000 and $200 thresholds. 

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

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