I totally regret not moving the UGMA to a 529 years ago, any help?

Paying for College
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<p>Okay, here's the situation we have a ugma for my son. In 2012 we took out some funds to pay for pre-college expenses, summer college programs etc.. about 3000.
this year we liquidated the fund about 3 weeks ago, but my son turned 18- so this is technically his fund solo?</p>

<p>I liquidated the funds to help pay for his upcoming college costs, etc..</p>

<p>when we filled out the ccs profile- the ugma was our asset, because he was under 18. Now we have received a 1099B reflecting the capital cost basis and gain. Confused what to do with that? But additionally, since we liquidated the mutual fund $4000, this would be reflected on my son's 2013 taxes- wouldn't this be seen by the ivy financial aid office as his additional funds to pay for year 2014-2015. This all may not seem a lot, but the financial aid letter was a bit of a shock so im trying to find all sources to make the upcoming bill possible.</p>

<p>hoep this makes sense- i am definitely a bit confused- thanks in advance</p>

<p>oh- forgot to ask the student non tax filing statement- do I put the sale of the 1099b in 2011 on this sheet?</p>

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<p>The UGMA account was in his SSN and has always been his asset and tax liability… or should have been. States have different ages of majority, most are 18, some are 21.
But this shouldnt change whose assets the account should be listed under.</p>

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<p>UGMAs are always listed as the student’s asset on financial aid forms. When you liquidated the account, did you park the funds in your son’s checking/savings account? If so, you can then open a 529 for your son and deposit the money into it. If not, then you’ll probably run afoul of the IRS since legally this is his money, especially if he’s no longer a minor in your state.</p>

<p>Funds withdrawn from UGMAs are not taxable unless you realize a capital gain. It sounds like you did, so you list the gain on Schedule D and report it on line 13 of your son’s 1040. The gain is the difference between what you paid for the funds in the UGMA and what you sold them for. </p>

<p>I’m confused about your question regarding what happened in 2011.</p>