I was the beneficiary/minor owner on a UGMA/UTMA 529 account that my Uncle was the custodian for. I was lucky enough to make it through college with leftover money in this account thanks in large part to going to an in state college and because my parents also invested in a 529 account for me.
About 8 months ago, my Uncle decided to withdraw all the leftover money from the account without notifying me (I was 25 at the time). I was shocked that he could do this because everything I'm reading is saying that with a UGMA/UTMA 529, the minor becomes the account owner when they are 18 or 21, which means at that point I would be in control of this money.
When I called up JP Morgan, they told me that it was a 529 account and the custodian was allowed to withdraw whenever he wanted. I asked them why the control did not transfer to me when I turned 21 since it was a UGMA/UTMA 529. They told me that it doesn't happen automatically, and I would have had to submit paperwork with the Custodian's signature for the ownership to transfer to me.
Finally, the tax burden fell on me for some reason...which also doesn't make sense if it was strictly a 529 account because I'm pretty sure in that case it would fall on the Custodian for a non-qualified withdrawal.
My Uncle did in fact give me half of the money (and some extra to cover taxes) but none of what he was able to do adds up in my opinion, and it seems like he should not have been able to withdraw that money without my say.
I would really appreciate any advice you could provide me and whether my Uncle should have been able to withdraw this money.