UGMA/UTMA for child and custodian use

Can a custodian take out money from the UGMA/UTMA any time before the child reaches the age of majority for the child’s living expenses??

Or is it that the contribution made to the UGMA/UTMA is completely irrevocable meaning like, once you contributed to it, you can’t take them out at any point for any reason before the child reaches the age of majority and not for the child’s living expenses?

1 Like

Hi @FoxMcCloud! I’ll quote the custodial accounts chapter:

All gifts made to a minor’s custodial account are irrevocable, and cannot be taken back. The custodian may only take withdrawals to spend money on items that will directly benefit the child*, or they may keep the assets in the account until they must be turned over at adulthood.

*Withdrawals from custodial accounts may not be used for essential living expenses, which includes food, clothing, and shelter. However, they may be spent on non-essential items that will directly benefit the child, including the cost of summer camp, a computer, a car, education expenses, etc.

In summary, yes - money can be taken out before turning the account over to the young adult. However, the money must be used for their benefit, and must pay for things beyond basic living necessities. I hope this helps!


that definitely made sense. thank you!

1 Like