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Question
Relevant to the Series 6, Series 7, Series 65, Series 66
Which of the following is true of UGMA/UTMA accounts?
I. Only family members may contribute to a UGMA/UTMA
II. Annual contribution limit of $13,000 per year, per child
III. Assets may only be used for education expenses
IV. Earnings reported under adult custodian’s tax identification
A. I and II
B. III and IV
C. II and III
D. None of the choices listed
Answer: D.
Anyone may contribute to a Uniform Gifts to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) account and there are no contribution limits. Assets in UGMA/UTMA accounts may be used for any purpose and earnings are reported on the minor’s social security account, not the custodian’s.
I and 111
The correct answer is D none of these choices listed.
Answer D
ans D