Re: UTMA Account Transfer Back to Custodian
an UTMA is an irrevocable transfer to the minor child. It is controlled by the custodian which is often the donor until the donee reaches whatever age the particular state lists as the age which the account then becomes available to the donee. In Virginia, I believe it is 18. At that time, the money became available to your husband to do with as he wishes.
If your husband wishes to gift the money back to his father, it will be treated as any other gifting between relatives, as far as the IRS is concerned.
I am not an attorney and any advice is not to be construed as legal advice. You might even want to ignore my advice. Actually, there are plenty of real attorneys that you might want to ignore as well.