Conclusion - Childrem’s Account Upon Divorce
National Legal Research Group, Inc.)
Property which has been given to the parties’ children is clearly not subject to division in the divorce case. Whether a given educational account is actually owned by the children is generally an issue of fact. If the funds in the account have not been used for other purposes that is, if they have been treated as property of the children then the children are probably the owners. If the funds in the account have been used for other purposes and not returned, the cases generally find that the children are not the owners. The presence of the children’s names on the account is one important factor pointing toward treating the children as owners, as is compliance with the UGMA or the UTMA. But neither fact is itself dispositive. The real issue is always whether the parties actually intended to make a complete gift to the children.
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