A tax-advantaged custodial account for college savings. An adult acts as the custodian for the account and makes all the investment decisions until the beneficiary reaches the age of majority. At that point the beneficiary controls the account and any assets in the account. UGMA accounts are limited to holding money and securities.
A law that enables minors to own property or securities in a beneficial fashion without need of trust instruments or other legal documents. In the securities industry, the term describes securities bought and sold under the provisions of this law that allow someone of legal age to serve as custodian for the minor's assets.
A law in most states that sets forth provisions for giving a minor an intangible gift, such as a savings account, stocks or bonds. The giver (usually a parent) serves as custodian with direct control over the gift. For example, the custodian can sell the gift for the benefit of the child, as long as proceeds are reinvested and the minor receives all gains and income from the gift. Once established, the giver/custodian may not take back the gift. Income from the gift, such as interest from a savings account, is reported and taxed under the name of the minor, at the minor's usually low tax rates.... read full article
Custodial accounts that are established for a minor. If a parent manages the account, the income will be taxed to parent. Investments are usually restricted by state to life insurance, and certificates of deposit. Gifts may be given to a trust under the $10,000 per person per year exclusion - even to the use of life insurance.
Also called Uniform Transfer to Minors Act (UTMA) in some states. Law adopted by most states governing the administration and distribution of assets held in a child’s name.
The act which establishes rules governing the purchase of securities for a minor. Each state has adopted the UGMA with few changes. A gift to a minor is irrevocable and securities must be registered in the name of an adult as custodian for the minor.
Law adopted in most states that sets rules for distribution of an investment to a child.
Uniform Transfer to Minors Act Unincorporated joint venture
Law adopted by most US states, with few changes, that sets up rules for the distribution and administration of assets in the name of a child. The Act requires a custodian of the assets--usually one parent but may be an independent trustee. (It can only be one person.) It is used in the securities industry as a qualifier to indicate accounts and securities purchased or sold under the provisions of the Act. A gift to a minor is irrevocable. When a minor reachs majority, UGMA accounts become the child's property. See: Custodian