taxes on securities; child vs. parental control

[bmuse]

tax liability on securities; child vs. parental control

What is the name of your state? OH

I have a stock account in my name but under the care of my mother until the age of 21. She never handed control of this account over to me (I am well over the age of 21 now.) She recently sold all the securities and withdrew all the money from this account (and put it in her name somewhere). Now I am wondering - who is liable to pay the taxes for this account? Also, did she have the right to withdraw the money in the first place (who had legal control of this account after I turned 21?)

 

[anteater]

What is the name of your state? OH

I have a stock account in my name but under the care of my mother until the age of 21. She never handed control of this account over to me (I am well over the age of 21 now.) She recently sold all the securities and withdrew all the money from this account (and put it in her name somewhere). Now I am wondering - who is liable to pay the taxes for this account? Also, did she have the right to withdraw the money in the first place (who had legal control of this account after I turned 21?)

Nasty situation.

But, if you were the account owner and mother the custodian, the IRS will be looking to you. And, no, she did not have the right.

But, your only recourse may be taking her to court. The best simple discussion of UTMA's that I know of is at the Fairmark site:
http://www.fairmark.com/custacct/index.htm

(And stop double and triple posting in different forums. It is highly frowned upon.)