Legal Question in Wills and Trusts in New Jersey

Re: Illegal use of monies by a custodian under the Uniform Gifts to Minors Act

It is entirely improper for the custodian to use the funds for any purpose other than for the minor. Thus, personal use is not permitted. If you are now an adult, over 18, you can bring a suit for an accounting and to surcharge him for any improper expenditures, plus to have the custodian changed until you are 21. If you are now 21, you can bring the same suit to also compel distribution to you. If you need assistance, call me at 973-377-3313.

Re: Illegal use of monies by a custodian under the Uniform Gifts to Minors Act

I would think so. Speak with a NJ attorney. The transfer and how it was arranged would have to be reviewed.

Re: Illegal use of monies by a custodian under the Uniform Gifts to Minors Act

"Gift" is the operative word. An "UGMA" account (Uniform Gift to Minor's Account) is for the benefit of the minor. When the account is set up the money that gets deposited is considered a gift from the donor. It would seem that you have a basis to sue provided that monies deposited into an UGMA account are considered an irrevocable gift. Certainly, the donor could have problems with the IRS if he reported the monies as a gift on his tax returns and then withdrew the money later on. My partner Carmine LoFaro heads our firm's estate practice. If you are interested in retaining New Jersey counsel to explore a possible cause of action, please contact us at (201) 498-0400. Otherwise, good luck!