[WSBAPT] transferring UTMA to trust

[Chandra Lewnau]

Clients have 2 UTMA accounts set up for their minor children to hold
annual gifts from grandparents. They would like to transfer these funds to
a new trust created for the children to have more control over the
distribution of the funds and extend the time the funds will be held. I've
done some research on this but haven't yet come up with a great answer as
to how to do this. Clients want to do this now, don't want to give the
kids a right to take the funds out of trust when they turn 21. 

What are best practices for doing this sort of transfer? Other than the
possible breach of the custodian's duty to turn over the funds at 21 and
the children's potential right to sue the parents for failing to do so,
what other issues are there?

Thanks in advance. 
Yours truly, 




Chandra M. Lewnau


Attorney at Law

Wills & Trusts | Probate | Small Business

 

	
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