Legal Question in Wills and Trusts in Illinois
Access to UGTMA at age 18
My child had a standard Illinois Gifts to Minor's Act with a brokerage firm account established at birth with the verbal statement this was to help pay for college. The grandfather has remained custodian, all statements go to him, though he has refused to withdraw funds to pay taxes, and recently the State of IL levied funds from a liquid bank account of the child's. College is in 9 months, and this money, enough to pay for about 3 years, is absolutely needed, and loans/scholarships may be harmed because this money is in the child's name. There has been no contact with this grandparent, other than through an attorney, for years, and indications are this too will be a fight. This account had been moved to a UIUTMA until age 21 account several years ago in part because of the tax dispute. This grandfather is wealthy, and there are no more funds left to litigate anymore. Can this child petition the court for periodic withdrawals to pay for college?
4 Answers from Attorneys
Re: Access to UGTMA at age 18
Based on the described situation, your petition for change of custodian and payment of educational expenses is in the best interests of the beneficiary and therefore will probably be granted. Of course, there is no certainty, and you are advised to consult an attorney for review of the relevant documents and tax situation.
Re: Access to UGTMA at age 18
You or the child can seek the removal of the grandfather as the custodian and the appointment of a successor custodian who will act in the best interests of the child. I would be happy to help you with that. Call me if you wish. Larry Stein (630) 221-1755
Re: Access to UGTMA at age 18
One avenue is to have the custodian removed for failure to act in a proper fiduciary manner (e.g. not paying taxes). Another avenue is to petition the court (a minor over 14 can himself) to order the custodian to pay to or for the benefit of the minor "such property as the court considers advisable for the use and benefit of the minor." I would fully expect that the court would consider using the funds for the child's college education advisable.
If you need assistance in this matter, feel free to contact me at (847) 991-2250. Good luck.
Re: Access to UGTMA at age 18
this does mean additional litigation but it should be possible.
You or he can petition the probate court to remove the custodian and/or to order use of the funds for his college expenses. There are no guarantees in litigation but you will probably win.
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