Instruction to Liquidate and Close UGMA/UTMA 2012-2025 free printable template

Print To print a blank form check here Clear Instruction to Liquidate and Close UGMA/UTMA Account upon Age of Termination Sub Firm BR Code FA Code Account Number Office Use Only This form can only be used if the beneficial owner has reached the UTMA/UGMA age of termination of the applicable state and the beneficial owner would like ALL positions in the account liquidated in order to obtain cash. Custodian for Title of Account under To be signed by beneficial owner I acknowledge that I have...

How to fill out wells 580980 instruction utma template form

How to fill out Instruction to Liquidate and Close UGMA/UTMA

1. Obtain the appropriate form for Instruction to Liquidate and Close UGMA/UTMA from your financial institution or state agency.
2. Fill in your personal information including your name, address, and contact details.
3. Specify the account details for the UGMA/UTMA account you wish to liquidate, including account number and account holder's name.
4. Clearly state the reason for liquidation and closure of the account.
5. Indicate whether you want the funds transferred to a specific account or if they should be issued as a check.
6. Provide any required signatures, ensuring that the appropriate guardians or custodians sign if applicable.
7. Submit the completed form along with any required identification or documentation as instructed by your financial institution.
8. Follow up with the institution to confirm that the liquidation and closure process is underway.

Who needs Instruction to Liquidate and Close UGMA/UTMA?

1. Parents or guardians managing a UGMA/UTMA account who wish to liquidate the assets and close the account.
2. Beneficiaries who have reached the age of majority and want to access their funds.
3. Financial advisors or estate planners assisting clients with the management of UGMA/UTMA accounts.

People Also Ask about instruction utma form

How do I use my UTMA account?

How does an UTMA account work? An adult opens the UTMA account and contributes to it on behalf of a minor beneficiary. The custodian manages the account until the minor comes of age. All custodial assets transfer to the UTMA beneficiary.

What are the disadvantages of UTMA accounts?

Cons of an UGMA/UTMA Account A big drawback is that all assets transferred into an UGMA account law are irrevocable transfers. This means that your child owns the assets, and the child has the authority (not the parent) on how to use the funds once the child reaches the age of majority.

What are the rules for UTMA accounts?

Depending on the state a UTMA account is handed over to a child when they reach either age 18 or age 21. In some jurisdictions, at age 18 a UTMA account can only be handed over with the custodian's permission, and at 21 is transferred automatically.

What happens to UTMA when child turns 18?

When the minor beneficiary of an UTMA custodial account reaches the age of majority, the custodianship is over, and they get legal control over everything that's in the account. It's important to note that the age of majority is slightly different in each state. In most cases, it's either 18 or 21.

Are UTMA accounts a good idea?

The main advantage of using a UTMA account is that the money contributed to the account is exempted from paying a gift tax of up to a maximum of $16,000 per year for 2022 ($17,000 for 2023). 2 Any income earned on the contributed funds is taxed at the tax rate of the minor who is being gifted the funds.

Does UTMA hurt financial aid?

The UTMA does effect financial aid. Because the UTMA is in the child's name, it will lower financial aid significantly. It is more efficient to tax the parent's assets rather than the student's.

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What is Instruction to Liquidate and Close UGMA/UTMA?

An Instruction to Liquidate and Close UGMA/UTMA is a formal request made by the custodian to close a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account, liquidating its assets and transferring the funds to the minor upon reaching the age of majority or as stipulated in the account agreement.

Who is required to file Instruction to Liquidate and Close UGMA/UTMA?

The custodian of the UGMA/UTMA account is required to file the Instruction to Liquidate and Close the account, typically when the minor reaches the age of majority or at the request of the custodian based on the regulations governing the account.

How to fill out Instruction to Liquidate and Close UGMA/UTMA?

To fill out the Instruction to Liquidate and Close UGMA/UTMA, the custodian must provide the account information, specify the assets to be liquidated, detail any instructions regarding the disbursement of funds, and include both the custodian's and minor's signatures where required.

What is the purpose of Instruction to Liquidate and Close UGMA/UTMA?

The purpose of the Instruction to Liquidate and Close UGMA/UTMA is to formally initiate the process of converting the account's assets into cash and transferring control of the funds to the minor, ensuring compliance with legal and financial obligations.

What information must be reported on Instruction to Liquidate and Close UGMA/UTMA?

The information that must be reported includes the account number, the custodian's name and address, the minor's name and date of birth, details of the assets being liquidated, and instructions regarding the distribution of proceeds.