The Uniform Gift to Minors Act (UGMA) and the Uniform Transfer to Minors Act (UTMA) make it simple to transfer property to a minor without a formal trust and without the restrictions applicable to the guardianship of a minor’s property.
With these types of custodial accounts, a minor can own cash or securities that are controlled by a custodian until he or she meets the age of majority in the state the account was set up. All deposits into these accounts are irrevocable gifts to the minor recipient.
The Uniform Gift to Minors Act (UGMA) and the Uniform Transfer to Minors Act (UTMA) make it simple to transfer property to a minor without a formal trust and without the restrictions applicable to the guardianship of a minor’s property.
Assets in the account become an irrevocable gift to the minor under the Uniform Gift to Minors Act or the Uniform Transfer to Minors Act (UGMA/UTMA). Custodial accounts are not tax-deferred. Taxation of earnings will be dependent on the minor’s tax rate.
May 14, 2017
College Planning
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Contributions must be made in cash vs. securities transfers.
529 Plans
A 529 Plan allows you to save for college while your money grows tax-deferred. The 529 Plan is designed to meet the needs of virtually every family and every …
529 Plans
A 529 Plan is a great way to save for college and gain tax benefits. It allows you to save for college while your money grows tax-deferred. The 529 Plan is designed to meet the needs of virtually every family and every budget.
Education Savings Account
The Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses. These can include, but are not limited to tuition…
Coverdell Education Savings Account
The Coverdell ESA is a savings plan created for the purpose of paying a student’s qualified educational expenses. These can include, but are not limited to tuition, books, and uniforms. Similar to a 529 plan, your money is tax-deferred, allowing your fund to grow faster.
