Monterey, CA asked in Tax Law and Probate for California

Q: I am 75, my estranged daughter is 35. I have read that an UGMA can be ended if I pay IRS 10%

and then pay the taxes at my own rate. Can anyone suggest what legal book or IRS ruling I can consult? I plan to hire an attorney, but so many of you seem to think this can't be done.

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1 Lawyer Answer
Barry L. Adams
Barry L. Adams
  • Probate Lawyer
  • Huntington Beach, CA
  • Licensed in California

A: When you set up the UGMA account, you made a completed gift to the minor recipient. You cannot now revoke that gift. Therefore, it is not a tax issue - it is a legal issue.

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