Custodian Discretion Without Court Approval
One of the practical advantages of a UTMA custodianship is flexibility. The custodian can deliver property to the minor, make payments on the minor's behalf, or spend custodial funds for the minor's benefit, all without going to court first. The custodian uses their own judgment about what is advisable.
A custodian may deliver or pay to the minor or expend for the minor's benefit as much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to either the duty or ability of the custodian personally or of any other person to support the minor or any other income or property of the minor which may be applicable or available for that purpose.
A.R.S. § 14-7664(A)Notice the breadth of this authority. The custodian does not need to consider whether the minor has other sources of income or whether a parent is already providing support. The custodial property can be used for education, medical expenses, housing, or any other purpose that benefits the minor.
Court Oversight as a Safety Net
If a custodian is not using the property appropriately, Arizona provides a check. Any interested person, or the minor themselves if at least fourteen, can petition the court to order a distribution. This gives families recourse when a custodian is being overly restrictive or is not acting in the minor's interest.
On petition of an interested person or the minor if the minor is at least fourteen years of age, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit as much of the custodial property as the court considers advisable for the use and benefit of the minor.
A.R.S. § 14-7664(B)It is also worth noting that using custodial property for a minor's expenses does not reduce anyone else's legal obligation to support that child. A parent's child support duty, for example, remains fully intact regardless of how much the custodian spends from the UTMA account.
