My husband is being sued for a drunk driving accident in PA. I live in TN, can they garnish my wages as well?

Probably not, although it has nothing to do with you being in another state.  If you were somehow responsible for a judgment, your wages could be garnished, although the plaintiff would have to jump through a few more hoops to do so as you reside out of state.  However, as a general rule, spouses are not responsible for each other's individual debts.  Your husband's legal troubles should similarly not affect your daughter's money (which is not to say that someone may not assert a claim against it, but, from what you've written, there doesn't seem to be much basis for such a claim).  The more you keep your daughter's money segregated from yours and your husbands assets, the less the chance that any of his or your creditors will be able to get at it.  Thus, a UTMA account would be better than your checking account.  I see no reason why you can't invest, if the Court has approved it, but make sure your daughter's financial affairs are kept entirely separate from your own and your husband's, and keep meticulous records.