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The Short Answer

Don't Let an UGMA Leave You Saying 'Ugh'

UGMA/UTMA accounts offer tax advantages, but beware of pitfalls.

Note: This article is part of Morningstar's October 2013 College-Savings Boot Camp special report. An earlier version of this article appeared Feb. 21. 

Question: I set up an UGMA for my daughter as a way to help save for college, but now I read that the money in the account could hurt her chances of getting financial aid. Can I cash out the account or move the money to a different type of college-savings plan?