My son has lived with my mom for about 15 years as a guardian. She setup an UTMA account in Nebraska. She and her husband owned a farm and have done their taxes every year. My step dad passed away in 2017 and my mom passed away in Feb 2018. I was named successor owner of my son's UTMA account.
He is going to college in January 2019 and wants to use this money for his college expenses, totaling around $11,500 (the balance of the UTMA account). He is not the age of majority to take over the UTMA account.
What tax implications do I have if I cash this out?
I am already in the 22% tax bracket according to 2018 tax filing law but should I hold back 24% federal and 7% Nebraska so when I file it will already be taken out. My does not currently need to file a return next year, will cashing out the UTMA require him to file?