Originally Posted by bots2019
What I'd ideally like to do is open a brokerage account either with a linked money market (w/ checks) or a linked checking account. That way I could invest a portion of the funds and use a portion to pay for the 'extras'.
Has anybody done this? Thoughts?
Maybe a credit union would set up a no-fee checking account titled "Parent FBO Kid's UTMA".
You could always have the brokerage send you a check to deposit in whatever account you want and then retain receipts or other documentation to show that you spent the money for the kid's benefit. You could set up a separate checking account with just about any bank or credit union and use that account only for gifts & kid-related expenses.
My impression is that the IRS has far more profitable criminals to pursue than parents allegedly abusing their UTMA responsibilities. Whatever you do with good intentions is probably deemed "good enough" or at worst "Ooops".
Navy Federal Credit Union (with which spouse and I have accounts) let our kid set up a checking account on her ninth birthday. We tied that to her UTMA with no problem. We also had no trouble setting up a T. Rowe Price minor's custodial Roth IRA when she turned 14 and picked up a part-time job.