A minor can have their own property managed by a custodian if the legal guardianship laws are followed. The goal of these regulations is to ensure that minors who do not have the legal capacity to make decisions on behalf of their estate will at least be safe and comfortable and their assets will be looked after until they become of age to take care of their own assets.
What Is the Uniform Transfers to Minors Act (UTMA)?
Uniform Transfers to Minors Act (UTMA) refers to an act that allows minors to receive gifts without the aid of a guardian or trustee. These gifts can include may include but are not limited to money, patents, royalties, real estate, and fine art. AUniform Transfers to Minors Act (UTMA) account allows the gift giver or an appointed custodian to manage the minor’s account until the minor is of age. It also shields the minor from tax consequences on the gifts, up to a specified amount set by the state.For More information you can visit our guides: Probate Guides, Inheritance Guides, Inheriting Real Estate, Inheritance Funding Options« Back to Glossary Index