UTMA accounts don't have any special tax benefits so the manager of the account, the in-law, could withdraw the funds at any time and deposit them in another account, or spend them (presumably for the child's needs).
You could search the state records (often available online) for unclaimed property in the name of the child in case there was money in the account that was escheated to the state due to inactivity in the account.
You could request an IRS transcript for the child's SSN to see where accounts for the child (as taxpayer) have been located.https://www.irs.gov/individuals/get-transcript It won't tell you balances and it may not include account numbers but it should show amounts of taxable income reported to an SSN and who reported it.
The money may have been moved to a joint account so the in-law could include it on their tax return, sparing the child the tax reporting burden. If the joint account includes investments subject to capital gains taxation a joint account (or TOD) would afford the child a tax-free step-up in the value of the assets if the in-law passed away (some variation by state is possible).
You could search the state records (often available online) for unclaimed property in the name of the child in case there was money in the account that was escheated to the state due to inactivity in the account.
You could request an IRS transcript for the child's SSN to see where accounts for the child (as taxpayer) have been located.https://www.irs.gov/individuals/get-transcript It won't tell you balances and it may not include account numbers but it should show amounts of taxable income reported to an SSN and who reported it.
The money may have been moved to a joint account so the in-law could include it on their tax return, sparing the child the tax reporting burden. If the joint account includes investments subject to capital gains taxation a joint account (or TOD) would afford the child a tax-free step-up in the value of the assets if the in-law passed away (some variation by state is possible).
Statistics: Posted by 123 — Sat Mar 16, 2024 11:39 am — Replies 2 — Views 136