<p>I have a very similar situation here: my ex-husband(my daughter’s dad) passed away and left quite a lot of money(more than $5K) for my daughter. Right now it is in the UTMA account for her and I am the custodian for that account. As you discussed above, it is better transfer UTMA to a custodian 529 account, it is a great advise! But I am not sure in my case since I am not the parent who gave her that money, can I still do that since this new 529 account will treated as my asset and actually those money are not from me?Thanks!</p>