UTMA accounts

Asked about 2 years ago - Cape Coral, FL

can i set up a UTMA account without having the possibility of the investment/growth/interest etc, in it come back into my estate, (if i expire before the UTMA minor i mean )...for estate tax purposes ......example.

1. life insurance is bought /purchased by insured, my wife appoints me as custodian, she sets up a checking account at insurance company under the UTMA name , strictly for the gift/premium, she uses her $13,000 annual gifting to pay premium, deposits the money 40 days in advance...,( plus sending a crummy like notice to custodian ).. of premiums due date into checking account at insurance company then on policies due date insurance company withdraws the money and pays the premium automatically, , then next year the same etc etc etc., Is this ok..

Additional information

i forgot to point out there is also a successor custodian in place, my grand childs father....

Attorney answers (2)

  1. James P. Frederick

    Contributor Level 20

    3

    Lawyers agree

    Best Answer
    chosen by asker

    Answered . Under the limited facts provided, this sounds like it would work just fine. If set up properly, the insurance might never be part of the taxable estate for estate tax purposes, (such as in an irrevocable life insurance trust).

    It almost goes without saying, but you would want all of this set up by an attorney. This is more complex estate planning to start with. It is too easy to miss something and have your entire intent undone.

    James Frederick

    *** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and... more
  2. Joseph Franklin Pippen Jr.

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . I agree with attorney Frederick and concur that you definitely need an attorney to help set this up correctly.

    The answer given does not imply that an attorney-client relationship has been established and your best course of... more

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