Question My children have shares of stock of which I am the custodian. Where I hate being in the position of seeing if I can sell them with the economy being where it is I would rather sell their stock if I am able to insure that they have everything they need, mainly a roof over their head. The stock was left to them by their Great Grandmother, my Grandmother. My main question is am I able to sell the stock being the custodian? and are there limitations on how the money from the sale of the stocks is used? Thanks in advance for taking time to answer this question. Just in case this is needed I live in Georgia just in case that is important
Answer Hi Adrianne-
This question can get complicated but I'll try to point you in the right direction. Generally the custodian of a minor's account has the power to make changes in the investments, as long as they're in the best interest of the child. For example if the money is all invested in a single stock and you think that's too risky, it is within your power to shift to less-risky investments. It may even be your responsibility to do so, depending on the law in your state.
And it is permissible to use money from a minor's custodial account for certain expenses of the child. Education is a common one, for example, but there are other acceptable uses.
But the details on these two topics could fill a book! If you do some research on the acceptable uses of UGMA or UTMA funds in Georgia you may find some guidance to answer your question (googling UGMA UTMA USE OF FUNDS GEORGIA could be a good start). Incidentally, I'm not licensed in Georgia so am not familiar with specific laws there - though there is some uniformity from state to state.
