My mother-in-law, who is sole custodian for my son's UTMA, recently cashed out his UTMA account from a brokerage firm. She then deposited the proceeds into a local savings account in the same bank in which my spouse and I have a joint accounts. When looking online, I discovered the account was listed online along with my spouse's and my joint accounts. Does this mean my spouse is now co-owner on this newly-opened savings account? My spouse told me his mom is still custodian, and put him as successor custodian, not co-owner, but I'm thinking my mother-in-law may have instead dissolved the UTMA and put herself and my spouse on as co-owners without us knowing. What are the tax implications, and will we or my mother-in-law receive an IRS form? Our son has autism and my spouse and I are applying for legal guardianship and want to create a special needs trust. Can the account be protected in the trust so that my son is eligible for government benefits later on? The UTMA was opened years ago, before my mother-in-law or we knew our son had autism.
The appearance of the account on your online banking screen does not necessarily mean that your spouse is co-owner of it. It could reflect an error on the bank's part.
Since it's apparent that your spouse is in some way connected with the account, it would be a good idea for him to clarify exactly what his relationship to the account is. Funds in a UTMA custodianship cannot legally be transferred to a trust.
You've asked some questions about taxation and legal concerns. We are unable to assist in those areas. We suggest you contact a qualified tax and/or legal advisor.
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The appearance of the account on your online banking screen does not necessarily mean that your spouse is co-owner of it. It could reflect an error on the bank's part.