gitana1
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This link is a pub from a NJ state agency and sets forth NJ laws re age of majority.
http://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/legal_age_req.pdf
Even though the agency mentions landlord-tenant at the top of the page,
it sets forth age laws re voting, Uniform Gift/Transfer to Minor Act, etc.
Another link to NJ statute
http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=159566&Depth=2&TD=WRAP&advquery=%2246%3a38A-1.%22&depth=4&expandheadings=on&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&rank=&record={3799}&softpage=Doc_Frame_PG42&wordsaroundhits=2&x=40&y=18&zz=
A link to NJ Unif Transfer to Minors Act, w definition of 'adult' being 21 y/o
46:38A-1 . Short title
<A name={14326}> This chapter shall be known and may be cited as the "New Jersey Uniform Transfers to Minors Act."
L. 1987, c. 18, s. 1.
<A name={14327}>46:38A-2. Definitions
<A name={14328}> As used in this chapter:
a. "Adult" means an individual who has attained the age of 21 years;
If this is the current NJ law effect and an a/c s titled Mama C, custodian for RC, under NJ UTMA (or Papa)
this suggests (imo) the custodian would not be obligated to give her the funds until RC is 21 y/o. MOO, IMO, JMO
If the a/c is registered that way, Rachel may need to tough it out for 3 yrs to get her hands on the $$$.
Maybe someone can verify whether this is the current law for NJ UTMA? Thx in adv.
Okay, I did a bit of research and here's what I found:
Whether they have to give college funds to RC and if so, when, depends on the savings account/plan they have for her.
If it is an UTMA or UGMA account, it is the property of the daughter when she turns 21, according to NJ law, as you thought. Indeed, 21 is the age of transfer.
[FONT=ARIAL, HELVETICA]You may not have all that much choice in how the UTMA money is used.
"Just by opening and contributing to a UTMA, you have given a gift," said Michael Gibney, a certified financial planner with Highland Financial in Riverdale. "Because of this, officially, when the child reaches the age of majority for an UTMA account, which is NJ is 21, the UTMA account is theirs to do what they want."
Indeed, when a UTMA is opened, it is opened with the child’s Social Security number, Gibney said. Before the age of majority, you are simply the custodian for the child’s money.
Meckler said the assets you put into custodial accounts are irrevocable gifts. That means you’re not allowed to change your mind and take your property back. Your child becomes owner of these assets as soon as you make the transfer. http://www.nj.com/business/index.ssf/2013/09/biz_brain_what_to_do_with_utma.html
Neither the donor nor the custodian can place any restrictions on the use of the money when the minor becomes an adult. At that time the child can use the money for any purpose whatsoever without requiring permission of the custodian, so there's no guarantee that the child will use the money for his or her education. http://www.finaid.org/savings/ugma.phtml
If that's the account they have for their daughter, it is a problem now, because the property is considered hers, right now, for purposes of FAFSA and she would likely be ineligible for financial aid if she is the beneficiary of such an account.
If it's a 529 b plan, the funds can ONLY be used for college expenses, the parents can withdraw the money for something else if they are willing to pay a high penalty and they can change the beneciary and/or roll the funds over into another 529b plan with a different beneficiary within the same family, with NO tax penalty. https://www.sec.gov/investor/pubs/intro529.htm
Th UTMAs and UTGAs are considered gifts and the property of the beneficiary. With 529 bs, the investor has total control. https://www.fidelity.com/529-plans/what-is-a-529-plan
There are other kinds of college savings vehicles like Totten trusts (payable upon the death of the account holder). We don;t know what these folks have.
But I do know this. The parents have stated the funds are and will be available to her: [/FONT]"We're heartbroken, but what do you do when a child says 'I don't want your rules but I want everything under the sun and you to pay for it?'" Canning said, adding that his daughter's college fund is available to her and not withdrawn or re-allocated, as she has alleged. http://www.usatoday.com/story/news/nation/2014/03/03/student-sues-parents-college-tuition/5967279/
Mr. Canning was unavailable for comment when a call was made to his office at Mt. Olive Township Monday afternoon.
He admits that he's stopped paying Rachel's high school tuition but says she'll receive her existing college fund.
http://www.dailymail.co.uk/news/art...n-away-believed-better-own.html#ixzz2v9Z3eIUc
By the way, why didn't anyone just ask this family if they had funds available for RC for college BEFORE filing a lawsuit?