- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
UTMA, 529, and student housing
Posted on 6/4/24 at 7:11 pm
Posted on 6/4/24 at 7:11 pm
Background: We are saving in the kiddos 529, and it's forecast to be enough to put them through 4 years of in state college (not Louisiana) by the time they graduate. Additionally we have a UTMA that has a significantly lower balance than the 529, but obviously has greater flexibility.
The question: Is it possible to use the UTMA (if the kiddos so choose) as a means to put a down payment on a condo (in kiddos name) and then have the 529 pay for the monthly note? Or even better have a roommate or two pay said kiddo rent, so when they graduate they get proceeds of sale?
I think the biggest hurdle is potentially having an 18 year old be a landlord with wild college kids, but it was a possibility that occurred to us.
The question: Is it possible to use the UTMA (if the kiddos so choose) as a means to put a down payment on a condo (in kiddos name) and then have the 529 pay for the monthly note? Or even better have a roommate or two pay said kiddo rent, so when they graduate they get proceeds of sale?
I think the biggest hurdle is potentially having an 18 year old be a landlord with wild college kids, but it was a possibility that occurred to us.
1
Posted on 6/4/24 at 7:30 pm to NYNolaguy1
It’s my understanding that with the UTMA as the Custodian you can use it for whatever as long as it’s clearly for the child’s benefit.
So the home doesn’t have to be in the child’s name. It can be in yours. The child is paying for housing in college. No different than paying for a Dorm which is certainly an approved expense in either a UTMA or 529.
May be worth having them on the title for homestead exemption purposes.
So the home doesn’t have to be in the child’s name. It can be in yours. The child is paying for housing in college. No different than paying for a Dorm which is certainly an approved expense in either a UTMA or 529.
May be worth having them on the title for homestead exemption purposes.
This post was edited on 6/4/24 at 7:34 pm
Posted on 6/5/24 at 9:41 am to wiltznucs
quote:
It’s my understanding that with the UTMA as the Custodian you can use it for whatever as long as it’s clearly for the child’s benefit.
But, depending on the State's rules and when the kids go to college, the funds may transfer to the kids. I'm in LA, and at 18 my kids' UTMA will transfer to them. Assuming they don't get held back, 1 of my kids will graduate HS at 17 (would turn 18 the first month of college), the other 2 at 18 simply based on their birth months. So, if OP's state has a similar age requirement, the funds may already be their money clean and clear.
Regarding the housing rules, I have no clue and have not researched as I am over 10 years away from having to worry about such things.
Posted on 6/5/24 at 9:48 am to Weekend Warrior79
Good point about the age requirement. Here in FL it doesn’t automatically transfer until they reach the age of 25.
Posted on 6/5/24 at 10:19 am to wiltznucs
quote:
Here in FL it doesn’t automatically transfer until they reach the age of 25
This is what I was hoping for when we set it up, stupid Louisiana
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News