Can I open a Upromise College Fund account with the money from my childs UGMA/UTMA?
Upromise College Fund permits a custodian for a minor under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act (UGMA/UTMA) to apply funds previously held in an UGMA/UTMA account to open an account in the Plan and to fund additional contributions to such an account, subject to the laws of the state under which the UGMA/UTMA account was established. Such a transfer of funds is generally a taxable event and you should consult with a tax advisor before transferring UGMA/UTMA assets to a 529 Plan. Additional contributions of money not previously gifted to the beneficiary under the UGMA/UTMA account may be made to a separate, non-custodial account, to allow the account owner to retain control of the separate account after the custodianship terminates.
