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#29383 - 03/21/07 05:03 PM Texas - UGMA changed to UTMA - is it retroactive?
RosaLutea Offline
Junior Member

Registered: 03/21/07
Posts: 6
Loc: Texas
My husband's ex-wife is custodian of his daughter's UGMA . . . We are the custodial parents 100% of the time and the daughter turned 18 in January. I would like to take the money out of his ex's control, she is threatening to reimburse expenses like auto insurance from it.

My question is: The UGMA was set up 20 years or so ago (transferred from a child that died) and when it was set up the age at which it was released was 18. Around 1995-7 Texas changed from UGMA to UGTA and the age was raised to 21. Is this retroactive to accounts that were set up prior to 1995? (I'm hoping not, I don't want the ex to have access to this money for 3 more years)

I appreciate any help or if you can direct me to somewhere that can answer this - I've looked all over the internet. Thanks!!

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#29384 - 03/21/07 05:33 PM Re: Texas - UGMA changed to UTMA - is it retroactive?
ParrRemedy Offline
Member

Registered: 04/26/05
Posts: 1163
I am not an attorney but my read on the topic is that once set up the designation is locked in as to status and domocile--so a TX UGMA remains a TX UGMA even as new accounts take on the UTMA designation. (And one critical element being that the age doesn't change!)

I believe the correct answer is that you are out of the loop. Now that daughter is 18 the account is her account and custodian is duty bound to turn it over. The mechanics of same vary a bit by state--and she needs to look up the UGMA rules for TX--in some states if the custodian balks the person need to get a court order to kick it along....other places the new adult need basically just present proof of age to the bank etc that happesn to be holding it.

Whether the custodian can back charge for prior expenditures upon the child or for reasonable fees to manage the funds is a sticky subject....

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#29385 - 03/21/07 09:13 PM Re: Texas - UGMA changed to UTMA - is it retroactive?
RosaLutea Offline
Junior Member

Registered: 03/21/07
Posts: 6
Loc: Texas
I want to be out of the loop LOL . . . I am just trying to find out whether she can take control of the money. I feel the same way, but the institution that is holding the money says 21. I'm going to call a few other places tomorrow. Thanks for your post.

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#29386 - 03/21/07 11:53 PM Re: Texas - UGMA changed to UTMA - is it retroactive?
ParrRemedy Offline
Member

Registered: 04/26/05
Posts: 1163
This may provide a partial answer as to prior UGMA's retain thier character especiallyas to age 18--- 141.025. ADDITIONAL TRANSFERS TO CUSTODIANSHIPS IN
EXISTENCE BEFORE EFFECTIVE DATE OF ACT. (a) This section applies
only to a transfer within the scope of Section 141.003 made after
September 1, 1995, to a custodian of a custodianship established
before September 1, 1995, under the Texas Uniform Gifts to Minors
Act.
(b) This chapter does not prevent a person from making
additional transfers to a custodianship described by Subsection
(a). On the direction of the transferor or custodian, custodial
property that is transferred to the custodianship shall be
commingled with the custodial property of the custodianship
established under the Texas Uniform Gifts to Minors Act. The
additional transfers to the custodianship shall be administered and
distributed on termination of the custodianship, as prescribed by
this chapter, except that for purposes of Section 141.021, the
custodian shall transfer the custodial property to:
(1) the beneficiary on the date the beneficiary
attains 18 years of age or an earlier date as prescribed by Section
141.021; or
(2) the beneficiary's estate if the individual dies
before the date prescribed by Subdivision (1).

Added by Acts 1997, 75th Leg., ch. 221, 2, eff. Sept. 1, 1997.
Amended by Acts 1997, 75th Leg., ch. 165, 31.01(72), eff. Sept.
1, 1997. Renumbered from V.T.C.A., Property Code 25 by Acts
1999, 76th Leg., ch. 62, 19.01(91), eff. Sept. 1, 1999.

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#29387 - 03/22/07 10:48 AM Re: Texas - UGMA changed to UTMA - is it retroactive?
RosaLutea Offline
Junior Member

Registered: 03/21/07
Posts: 6
Loc: Texas
Wow! You found it! Thank you! I just found out she has more than I thought, so I might want her to wait to 21 also LOL . . . but sure would like to change guardian of the money. Thank you!

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#29388 - 03/22/07 11:06 AM Re: Texas - UGMA changed to UTMA - is it retroactive?
ParrRemedy Offline
Member

Registered: 04/26/05
Posts: 1163
To change a guardian/custodian of a UGMA once past 18 is on the far side of the legal process and likely to backfire--I would not go there! .

Were I in your shoes my first step and only step for now would be to remove the other person from any control OR ability to back charge by constructive delivery of same to the kid.

Once you have other fingers clean out of the pie--if there is a need to shelter the funds for some purpose such as college , repost and I'm sure there are ways to implement same.

I would hope that in the short run daugher can sort out how to not squander any funds.by jawbone from Dad if thats what it takes---....

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