Uniform Gift to Minors Act


UGMA. Laws adopted by most states allowing an adult to contribute to a custodial account in a minor's name without having to establish a trust or name a legal guardian. Thus, minors can have securities bought and money invested in their names, but the custodian is responsible for managing the funds in the account. The custodian has a fiduciary duty to manage the account prudently, but once the minor reaches the age of majority, he/she has complete rights to the funds in the account. The assets are the legal property of the minor, and the parent has no legal control over the uses of the proceeds of the account.
All withdrawals from the account are taxed at the minor's rate. Putting money into a UGMA account can negatively impact the chances for financial aid, since financial aid officers weigh children's assets much more heavily than parents' assets.

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You may want to try and see how the uniform gift to minors act will allow you to give to your young children.

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The uniform gift to minors act was really interesting to me and I was glad that it was created and practiced.

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Many families take advantage of the uniform gift to minors act in order to contribute money to the account of a child as well as control the investments until such time as that child reaches adulthood.

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Uniform Customs and Practices (Brochure 500) Uniform Transfer to Minors Act