2. Uniform Transfers to Minors Act (UTMA) account UTMA accounts are similar to UGMA accounts except they allow any kind of property, such as precious metals, real estate and art, as well as cash and securities. This makes them ideal for custodians who have more risky assets or tangible ass...
For example, atMerrill Edge—the digital broker platform that used to be Merrill Lynch—a UGMA/UTMA custodial account can be set up online with funds directly transferred from a checking or savings account at Bank of America, Merrill's parent company. There are no annual account fees or minim...
With a custodial account, the custodian — the adult managing the account — has transacting authority over the account and can make deposits and withdrawals. Anyone can contribute to a custodial account. It’s possible to use a custodial account to gift minors cash, securities, annuities, real ...
Minors cannot legally incur debt, eliminating the potential for creditors to win a judgment against them. UGMA custodial savings accounts may be subject to garnishment if the account is set up to withhold disbursements until the minor child is 21 years of age. Between the ages of 18 and 21, ...
The term can be used to describe a specific legal relationship, as in the case of a custodian under the Uniform Transfers to Minors Act, (56) or generically to describe the holding of a "thing," (57) but for the most part it is not used...