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Is a gift letter needed for my ugma funds?

Posted on: 18th Sep, 2010 06:42 am
I am taking 40k from my custodial brokerage account to put as a downpayment on my house. The lender has asked for a gift letter because my father is still listed as custodian of the funds. I am 26 and the funds are legally mine, so why should my father have to "gift" me my own funds?
I would assume that all is needed is proof of the withdrawal, wire transfer and subsequent deposit into my checking account. Could some one please explain the need for a gift letter in this scenario?
Hi ChristophAnderson,

As your father is the authorized custodian of the funds, the lender is asking for a gift letter from your father. Though the funds are legally yours, you're not the custodian of the funds. Thus, you should ask your father to write a gift letter in this regard.

Thanks
Posted on: 20th Sep, 2010 03:20 am
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