Yes, four months ago, I put $2,000 into my daughter's UTMA (Uniform Transfer to Minors) account where I am the custodian. Now, I'm looking at bankruptcy. I assume the trustee will nab that cash.
Background: End of 2009, I had already taken too much money out of my IRA's, sending me into a higher tax bracket. To avoid further tax liability until 2010, I took $2,000 out of my daughter's UTMA to pay for her braces and camp fees. This was legal. So, 2010 starts and I take money out of my IRA to put the $2k back into her UTMA account. Now I learn a little about bankruptcy and realize how foolish I have been.
I was just trying to survive, never thinking about BK.
Question: Anyway to avoid the trustee seizing that $2k as an illegal transfer? Will they see that I took $2k out 10/2009 and put $2k in 2/2010? Yeah, I doubt it too.
Background: End of 2009, I had already taken too much money out of my IRA's, sending me into a higher tax bracket. To avoid further tax liability until 2010, I took $2,000 out of my daughter's UTMA to pay for her braces and camp fees. This was legal. So, 2010 starts and I take money out of my IRA to put the $2k back into her UTMA account. Now I learn a little about bankruptcy and realize how foolish I have been.
I was just trying to survive, never thinking about BK.
Question: Anyway to avoid the trustee seizing that $2k as an illegal transfer? Will they see that I took $2k out 10/2009 and put $2k in 2/2010? Yeah, I doubt it too.