ASK NEALE: College Fund Dilemma

OCT 2017 ASK NEALE College Fund Dilemma

Neale, my teen wants to use his college fund to buy a car. Help!

NealeGodfrey

Victoria from Arkansas has saved $50,000 for her son's education but he wants to buy a car instead. Neale's advice might surprise you!

Comments (2)

No. 1-2

NealeGodfrey

Editor

Oct 18, 2017

Hi Terry. It was an UTMA account. It's a custodial account set up for a minor(an UGMA or UTMA account). The Uniform Gift to Minors Act (UGMA) established a simple way for a minor to own securities without requiring the services of an attorney to prepare trust documents. Many parents use it to set up college funds.

TerryPotter

Oct 18, 2017

I didn't know this! What kind of account did the mom use?

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