Q: Can I use my child's UTMA funds for prior education & school activities?
Our child has a UTMA with investments and cash in it. We have never taken money out of it. We didn't realize that we could use it for education, child betterment and school activities. We paid all of these expenses out of pocket for many years and are now in debt because of it.
A: Under the Georgia UTMA custodian may expend the minor's funds for the support, maintenance, education, and general use and benefit of the minor. However, it would be inappropriate to expend the fund to bail the minor's parents out of debt. The safest course of action would be to use the funds going forward for the support, maintenance, education, and general use and benefit of the minor. Be sure to keep and maintain very detailed records and documentation of all expenditures lest you be sued by your own child in the future for wrongfully diverting his or her money.
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