I posted to legaladvice, and they suggested this post would be better served, here.
A few years ago I learned my parents had set up a custodial account, which would be held for me until I became an adult. However, they were always cagey on what age that'd be -- when I was young, I was told I'd have control over the account after I turned 18. At 18, the age became 21. Now, at 26, they've informed me that it wasn't a custodial account at all, but a trust fund. They further informed me that it's entirely up to them when they release the funds to me. They then indicated they'd only do so to purchase a house for me in their hometown. (I've moved across the country, and have no intention of moving back to their home.)
My attempts to learn more have been thoroughly rebuffed, and I've been denied access to bank statements from that account, the original document, and any other paper documentation. All claims relating to the account ("you will get it when you're 21," etc.) were made verbally, in person. I'm not sure if they took care not to make any claims in writing, but they've certainly managed to dodge me, there. The bank manager is a personal friend of my mother, and has also been stonewalling me. I'm pretty sure this is illegal.
Recently, when visiting back home, I took it upon myself to search through their financial documents while they were out. What I found was both confusing and potentially life-changing. There is an account with a substantial sum, labeled "[MOTHER'S NAME] CUST FOR [ME] UTMA." Now, before my mother informed me that the custodial account was "actually a trust fund all along," I'd looked up custodial accounts, and run across the term "UTMA." UTMA stands for "Uniform Transfer to Minors Act," and the Pennsylvania UTMA says (afaict) that the accounts are typically handed over between ages 18 and 21, though a custodian can indicate on the original document that the funds be turned over at age 25, instead. Now, this certainly would explain why my mother was so eager to convince me that the account is a trust fund.
But here's the trouble -- the internet suggests the existence of something called an "UTMA trust," of which the rules may not apply. I'm very uncertain if a UTMA account could also be a trust, as I've found few and confusing references to this online. I'm also hesitant to request more information from the bank or brokerage firm. The bank is a local branch of a small-town bank, and the last time I requested information, they told her about it. My suspicion is that she's lied and informed them that I'm 'irresponsible' or 'greedy,' or something like that. She has a long history of making up things about me. Since the account is still under their name, they'd likely invest the money in a bond/CD, or otherwise make gaining access to this account a Pyrrhic victory, should they learn I'm seriously investigating this.
I'd like to know what would happen if my parents invested that money now, essentially rendering me unable to use any of it for 5-20 years, given that I'm 26, and the account should've been handed over already. I'm also unsure on how to get information on money they've previously invested in my name (mutual funds) without my knowledge or consent (if my consent was needed, they forged my signature.) I've been told and have seen documents indicating that I have or had bonds, but never signed anything, and never saw the interest. It may have been deposited in the custodial account, but I'm not sure.
I'm also raising this now because I'm being taxed on the investments (the mutual fund's interest) and have never seen a cent of the interest -- so I'm being taxed on money I don't practically have access to, and this is going to be problematic come tax season. Previously they paid my taxes while I was in school. (I was always curious how my taxes were in the thousands of dollars when I was a student and making <$1k per year. I was told the "government puts you in the highest tax bracket because you're young and single." I've since looked this up, and it's nonsense.)
Further, if it really is a trust fund, then I'd like to know what to expect -- is it possible that the relinquishment of this account is entirely at their discretion? I'd like to know how to get a copy of the original document, specifically without alerting my parents or their associates, since the whole point of this is to not be overburdened during tax season...
Thank you for your help!
UPDATE: so, my mother now admits it was a custodial account all along, but she's claiming it's a 'special' one that doesn't have to be turned over at the age of majority. Given the relevant laws, I'm thinking that's unlikely.
Submitted December 31, 2018 at 03:30AM by RBNUTMAcustodial http://bit.ly/2QdRmMn
