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    stevking's Avatar
    stevking Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Mar 13, 2006, 11:58 PM
    About UGMA account
    Hi,

    I set up a UGMA (Uniform Gift Minor act) account for my son (who is 12 now) 5 years ago. I wanted to take some money out from this account for him to use.
    Is there any rule when to take out money from UGMA account? If my son attended a summer school with $1000 fee last summer, can I take $1000 now and treat it as it was used for last summer? Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 14, 2006, 08:47 PM
    Under most circumstances, the custodian will disburse you a check without question. However, if an auditor questions the disbursement, you must be able to prove the money was spent for your son's benefit.

    The fact that you withdrew the money a year later does not matter, so ask for the money.
    stevking's Avatar
    stevking Posts: 2, Reputation: 1
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    #3

    Mar 15, 2006, 08:51 AM
    Thank you, Atlanta Tax Expert. I will do that soon.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Mar 15, 2006, 10:06 AM
    Glad to help!
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