Parent as custodian set up UGMA account for kid years ago. Kid is approaching 18 with an expected gain of approx. 9,000.

Parent is contemplating withdrawing the funds before child becomes 18, or let fund sit and child pays whatever tax on gain.

My question is how the gain would be taxed, interest, capital gain or dividend, and what would be more beneficial, kid after 18, with no income pays the tax or let the parent close the account and pays the tax.



Your input is much appreciated

Deo