Tax consequences of liquidating a utma Online ipad sex chat room
None of us are experienced with the law on this issue, nor or any of us sure if there are tax penalties or the like, but there may be a good real-world reason to spend some of the money this year (my oldest son's junior year of high school) while my son is still a minor to meet some of his educational expenses this year.
On the other hand, UTMA account will be terminated when the minor attains age 18 and all will be transferred to the regular account.
This can include anything from basics costs of living to leisure activities like team sports.
The custodian must be able to prove that the minor directly benefits from the use of the money.
My question is - can she sell all her holdings in accounts that were previously UTMA status and pay no taxes since it was "inherited", or does this not count as inheritance since she technically could have taken control during his lifetime? Here is the breakdown of her UTMA accounts and investments: Account 1: ,500 PREIXAccount 2: ,500 GDFAccount 3: ,000 GDFHer income is k per year from earned income another k in investment income including the GDF investment income.
If she can sell it without a large tax consequence, that would be ideal but none of the accounts have cost basis information. She has other accounts worth ~ 0k from her own savings over the years and leftover college fund.