if your parents have an UTMA account for your kids...

[Anonymous]

Who gets the statements - you or them? My dad opened a small account for DD. We got the account opening notice, and then a notice of change of address - so the statements go in her name to his address. This doesn't seem right. My dad is cagey about these kinds of things; I dont really trust him and I'm nervous that if we dont have the account information we wont be able to do a tax return for DD, which is required if you have these kinds of accounts. I dont want to start WWIII but I wonder if I should contest the change of address.

[Freeman]

The custodian, which I assume is the grandparent in this case since you haven't been told otherwise, would be the one receiving the normal statements. You wouldn't have any grounds to challenge the change of address, since you don't control the account. Just like with any other investment account, there should be tax documents generated each year that will provide all of the information you need to file a tax return. As long as your father or the firm/bank provides those documents to you, there shouldn't be any issues with the tax returns. Beyond that, I wouldn't worry over where the statements go, unless you think he's trying to shelter his own money from taxation with no intent of actually gifting it.(That's another legal matter, with serious tax repercussions for him, not you)

[Anonymous]

thank you! You are right, he's the custodian. I'm concerned about getting my hands on the tax documents when I need them - my dad is part flake, part control freak, and we have security clearances that make it critical that our tax returns be on the up and up. I just worry that when I need that 1099 he will hold it hostage for some stupid reason.

[Anonymous]

FWIW, if your kid has $950 or less of income, then there's no need to file anything on your taxes.* If it's really a "small account" (and your kid doesn't have a lot of other income) then there's probably no need to bug your dad.



*if kid has earned income, then kid may be able to earn even more without filing.

[Freeman]

In most states, the custodian is required by law to provide the parents/child with the necessary information for tax purposes, so you can check your particular state to see if that is true or not. It is possible that it may not have occurred to him that taxes would be an issue for a minor child. I would approach him from the angle of making sure that the taxes are filed correctly and don't come back to haunt the child in the future. That way, you don't have to ask for anything beyond the necessary information required to file.

[Anonymous]

UGH!? I hate these accounts! Both of my parents (now divorced) have them for DD. It's a pain to get the tax information, it's a pain to get the end of year balance (required for the financial disclore forms those working in the IC fill out) and it's a nightmare to think about how much money my kid could get free and clear when she turns 18.