Legal Question in Investment Law in Illinois

Potentially yes. Assuming this was truly a gift made properly pursuant and subject to the Illinois Uniform Transfers to Minors Act, the father as custodian was supposed to leave the investment separate from his own money although he would have had a right to apply both income and principal to his daughter's support without regard to his parental duties. He may have thought that putting it all together in one place might be better for investing, but that violates the Act. He could set up a trust for her and transfer it to the trust, but that is apparently not the case, and a 401K that may have his daughter as a beneficiary is not the same - the trust must be "qualified". He is entitled to reasonable compensation for services as a custodian but as a parent/custodian that compensation would most likely be negligible. The daughter can apply to a court for an accounting and to remove him as custodian. More facts are needed to determine an appropriate response and strategy.