ugmas-without smart ass remarks please

What is the name of your state? tx My daugther who I have set up an ugma account 4 years ago. is it protected if I file bankruptcy?

[Ladynred]

Pardon my ignorance.. but what does UGMA stand for ?? If I knew that I might be able to look it up

I'm sorry, it is a Unifomr gifts to Minor account.

[Ladynred]

Thanks, I found it I don't have any kids so its not something I was at all familiar with.. LOL.

From what I'm reading, the UGMA is an irrevocable trust and the custodian can only touch it for benefit of the child. Apparently there's way too much leeway in that definition. The asset (cash) is actually transferred to the child, so I would *think* that its exempt as you would not receive any benefit from it as YOUR asset and I don't see how a Trustee could touch it.

I'll do a bit more research and see what I find.

[I AM ALWAYS LIABLE]

My response:

"Custodial gifts" to minors under the Uniform Gifts to Minors Act are "irrevocable" and convey to the minor "indefeasibly vested" title in the custodial property. So, in the event of your bankruptcy, such moneys cannot be touched by the BK Trustee or the creditors in general. Simply, the money isn't yours, and no one can take money from you that isn't yours.

However, if you're thinking of setting up, or putting money into an account, as your way of dodging the BK laws, think again. If you touch that money without a court order, you're in for the BK "fraud" time of your life.

IAAL