The UGMA and UTMA provide a way to transfer property to a minor without the need for a formaltrust. They allowassetsto be managed by acustodianwho is appointed by the donor. The assets are then turned over to the minor when they become of legal age in the state where the gift was mad...
The Uniform Gifts to Minors Act (UGMA) allows individuals to give or transfer assets to underage beneficiaries. The act, which was developed in 1956 and revised in 1966, is commonly used to transfer assets from parents to their children.1The amount is free of gift tax, up to a certain a...
UGMA vs. UTMA accounts: What’s the difference? The Uniform Transfer to Minors Act (UTMA) is an expansion of the UGMA and allows the custodian to transfer any kind of property to the minor. In addition to the cash and securities permitted under UGMA, UTMAs can include risky assets and ...
(UGMA) or Uniform Transfer to Minors Act (UTMA). Benefits differ slightly across the two accounts. But, generally, if you open one of these accounts for a child in your life, you can make it a one-time gift or add to it on birthdays, holidays and other special milestones as they ...
Custodial account.Here, the child is the account owner but the parent/guardian maintains control and oversight. You may see these accounts referred to as UTMA or UGMA, which stand for Uniform Transfer to Minors Act and Uniform Gifts to Minors Act, respectively. The child does not have access...
UTMA (Uniform Transfers to Minors Act) or UGMA (Uniform Gifts to Minors Act) custodial brokerage accounts allow an adult to invest money on a child's behalf. You can open a custodial brokerage account at a bank or brokerage firm. A custodial account can be a great way to save on a chi...
There are two types of custodian accounts: Uniform Transfer to Minors Act accounts (UTMA) and Uniform Gift to Minors Act accounts (UGMA). Only financial assets like cash, stocks, and bonds can be invested into a UGMA account. UTMA accounts allow for other types of valuable assets like real...
Both accounts allow an adult to transfer various assets to a minor but permit different assets. The adult gift-giver or custodian controls UGMA or UTMA assets on behalf of the beneficiary child until they reach the age of majority, which varies by state but is typically 18 or 21. And once...
An adult (the custodian) maintains account control and transfers assets to the child when they turn the “age of majority,” which is either 18 or 21, depending on state laws. Two types of custodial accounts are the Uniform Gift to Minors Act (UGMA) and the Uniform Transfers to Minors ...
These accounts are created by a parent or grandparent for the benefit of a child or grandchild. They fall under the Uniform Gift to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA), and contributions can be invested in stocks, bonds, mutual funds and other securities. As ...