Uniform Transfers to Minors Act

[mbensoni]

What is the name of your state? Minnesota
I am 28 years old and my dad is the custodian of my UTMA account. Long story short - way back he told me (and I believed him) I have account set up so you can't touch it until you older. I was 25 at that time I believe. In 2003 he took out money and it was used to pay off my student loans. Last weekend I received a wonderful collection letter from the irs stating I had been audited and did not report the securities on my 2003 takes and I owe 7120 - please complete a sch. D. The 1099 was mailed to my SO I called the financial instituition that is holding the funds and was told I should have received the funds at 21. I find out that my dad was lying to me this whole time - he won't release the funds and neither will the bank. I even went the the financial institution and attempted to transfer the account into my name alone - they won't do so and I am 28 years old. What are my legal rights?

 

[Dandy Don]

So sorry that you have to face this situation, which is not an uncommon one.
Do you know how much is left in the account now?

Did dad give you a specific reason why he won't release the funds? He may not understand all the requirements of an account like this, or he may not want you to come into such a large amount of money at one time, but he is obligated by law to release it.

Get a business law attorney or trust attorney to handle this for you--you and your attorney can petition the court to have your dad provide an accounting for this account and you can also request payment of your $7,120 tax liability, and the account will be eventually transferred over to you. If you do eventually discuss this matter with dad, try to impress upon him the fact that you intend to be responsible with this money and will save/invest it and will not go on any wild spending sprees.

It may be a good idea to have this money transferred to an account under your control at the trust department of a local bank. If you want to do that, then you should be talking to an adviser at the bank and they can probably help you with this matter without having to hire an attorney, but you need to talk to both the attorney and the bank to figure out what your best options will be.

Have you graduated from college?

DANDY DON IN OKLAHOMA ([email protected])

 

[mbensoni]

So sorry that you have to face this situation, which is not an uncommon one.
Do you know how much is left in the account now?

Did dad give you a specific reason why he won't release the funds? He may not understand all the requirements of an account like this, or he may not want you to come into such a large amount of money at one time, but he is obligated by law to release it.

Get a business law attorney or probate attorney to handle this for you--you and your attorney can petition the court to have your dad provide an accounting for this account and you can also request payment of your $7,120 tax liability, and the account will be eventually transferred over to you. If you do eventually discuss this matter with dad, try to impress upon him the fact that you intend to be responsible with this money and will save/invest it and will not go on any wild spending sprees.

It may be a good idea to have this money transferred to an account under your control at the trust department of a local bank. If you want to do that, then you should be talking to an adviser at the bank and they can probably help you with this matter without having to hire an attorney, but you need to talk to both the attorney and the bank to figure out what your best options will be.

Have you graduated from college?

DANDY DON IN OKLAHOMA ([email protected])

Thank you for responding - yes I know how much is in there - thanks to the investment company. And I think my dad knows he is supposed to release the funds to me - but he has such a control issue and seriously - this would not be such an issue if he would give me the 1099's that I am required to report by law. Thank you for the advise about the local bank - it never even occurred to me to go that route.

I did graduate in 2000 - dad would not fork out any of the money for my schooling and ended up way over my head with student loans - which were deferred until 2003 when he took money out to pay for them.

I just think it's unfair for him to hold this over my head - when I believe I have proven to be financially responsible. I have car loans, a mortgage, married with one child and another on the way - and excellent credit.

I have never been audited and the whole experience could have been avoided had I not been mislead.

Thank you for your time and your answers.