Custodial accounts must benefit kids specifically. Purchases that benefit the whole family cannot be made with money ITom a custodial (Uniform Gift to Minors Act/Uniform Transfer to Minors Act) account.
Example: A down payment on a house in a better school district is not allowed, even though better schools would help the child.
Some acceptable uses: Paying for the child's education, the child's computer, piano lessons for the child, the child's transportation to college.
John McCabe, JD, legislative director, National Conference
of Commissioners on Uniform State Laws, Chicago.