A Uniform Transfers to Minors Account is a tax free account for minors that transfers to them at age 21. It does not have any limitations on how the money can be spent. So, they can do whatever they want with it.
Contributions up to $15,000/year are excluded from the gift tax. Withdrawals are taxable. UTMA’s and UGMA’s do count against the student when applying for financial aid. But, they can be rolled over into a custodial 529 plan, if this becomes an issue.
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00:48 Contribution Limits