Can a parent close a UTMA account?
You can close a custodial account and suffer no repercussions if you give the funds to the child or transfer them into another account for the child’s benefit. … You can close the custodial account and establish a regular account at your bank or brokerage firm with the child as the sole beneficiary.
As the custodian of a UTMA/UGMA account, a parent can withdraw money whenever needed to benefit the child.