In-trust accounts, despite their name, are not necessarily trusts. Generally, says Katz, they aren't. And they're inexpensive to maintain. However, once the child reaches 18, the money is there for the taking. Evans recommends that parents treat an in-trust account as if it were a trust, although they very often don't.
Parents borrow from the account.
They treat it like it's their money. Katz suggests that the money could be used for education assistance. That could include tuition as well as related costs such as accommodations or travel to and from school. That way you can prevent accusations from the taxman that the funds have been improperly used. The penalty for misuse is harsh.