901: Friday Q&A: Why You Should Maximize Tax-Deferred Plans, UTMA Accounts, Dividends on Whole Life, Asset Allocation, Business, Etc.
Radical Personal Finance
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UTMA Accounts - Do I Really Want to Give This Kid $200,000?
The reason has to do with the fact that once the recipient or the beneficiary of the account reaches the age of majority, the custodian has no right to control the funds. When you use the UTMA trust structure, the day you make the transfer, you've already decided what is going to happen down the road. So I have never recommended an up my account or a UGMA account to anybody because of those features. It's not enough control.
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