Uniform Transfers To Minors Act - UTMA
Definition of 'Uniform Transfers To Minors Act - UTMA'An act that allows a minor to receive gifts such as money, patents, royalties, real estate and fine art, without the aid of a guardian or trustee. Under UTMA, the gift giver or an appointed custodian manages the minor's account until the latter is of age (usually 18 or 21). The Uniform Transfer to Minors Act also shields the minor from tax consequences on the gifts (up to a specified value). |
|
Investopedia explains 'Uniform Transfers To Minors Act - UTMA'Originally drafted in 1986 by The National Conference of Commissioners on Uniform State Laws, UTMA is an extension of The Uniform Gift to Minors Act (UMGA), which was limited to the transfer of securities. While UTMA is a great way to build a tax-free savings account for minor children, it should be noted that the assets will be counted as part of the custodian's taxable estate until the minor takes possession. UTMA assets might also work against a student seeking financial aid. |
Related Definitions
Articles Of Interest
-
Designating A Minor As An IRA Beneficiary
Leaving liquid assets like cash or securities to minors can be a complicated procedure. Make sure you understand how your gift will be distributed, managed and taxed. -
Leaving Inheritance To Children Easier Said Than Done
Consider your own retirement needs when deciding whether to leave an inheritance. -
How do I list the beneficiaries of my life insurance policies if I have a trust?
Because most states protect life insurance policies from creditors, most buyer questions come from the confusion created with ownership and beneficiary designations because of tax treatment. ... -
3 Financial Tasks We Think Are Harder Than They Really Are
Use these three tips to help put your financial situation into perspective. It turns out, organizing your finances isn't nearly as hard as you thought. -
Certifications For Estate Planning
These certifications can lead to a promising career, but is estate planning for you? -
Why You Shouldn't Die In 2013
Increases in estate tax rates and possible fiscal cliff implications will make things more difficult when it comes to arrangements for your death. -
Tax-Efficient Wealth Transfer
Taxpayers with large taxable estates were required to take steps to reduce them before 2011. -
What To Do When You're Left Out Of A Will
Discover the legal steps you can take if you are left out of a will and if fighting is worth the effort. -
Tax-Saving Advice For IRA Holders
Be informed about benefits and deductions that may apply to you and avoid costly mistakes on your return. -
Relationships And Retirement Planning
Older couples have many things to consider when it comes to financial planning, including wills and estate planning.
Free Annual Reports