UTMA. Law which extends the Uniform Gift to Minors Acts definition of a gift...
Law which extends the Uniform Gift to Minors Act's definition of a gift to include real estate, fine art, patents and royalties.
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. These accounts are very similar to UGMA accounts, but in addition to money and securities, UTMA accounts can also hold real estate, fine art, and patents and royalties.
This law offers the same advantages as the Uniform Gifts to Minors Act but allows the adult to control the custodial account for a longer period. The monies in a UTMA account can be invested in mutual funds, bank accounts, or stocks; the UTMA extends the definition of gifts to include real estate, paintings, royalties, and patents.
Assets placed in this type of account pass to person when they reach the legal age, generally 18.
Law enacted in many states that lets you leave assets to a minor by appointing a custodian. In most states, the minor receives the assets at legal age.
Essentially the same as UGMA except that the UTMA allows a greater use of various investments- mutual funds, partnerships, bonds, stocks, etc. The UTMA may receive assets from a testamentary transfer and get a full step up in basis upon death.
Also called Uniform Gift to Minors Act (UGMA) in some states. Law adopted by most states governing the administration and distribution of assets held in a child’s name.
Law in some states that governs how a child takes custody of an asset.
An act that sets forth provisions for giving a minor an intangible gift (e.g., bank accounts, stocks or bonds) that results in income shifting with an adult serving as custodian. The custodian has direct control over the gift and can sell and reinvest proceeds from the gift for the minor with the minor recognizing any gain and/or annual income that result.
A law adopted by most states whereby a direct gift to a minor is allowed without establishing a formal trust or guardianship. The gift is managed by a custodian appointed by the donor until the specified age (set by state law usually 18 or 21) is attained.