The Uniform Gifts to Minors Act (or UGMA) was developed in 1956 and revised in 1966, to allow individuals to give or transfer assets to underage beneficiaries—traditionally, parents and their children, respectively. In this video, learn how individuals can transfer financial assets to a minor without the time-consuming and expensive establishment of a formal trust. The video explains how the custodian—who has a fiduciary duty to manage the account in the beneficiary's best interest—can use the funds to buy stocks, bonds, mutual funds, and other securities on behalf of the minor. You'll also learn what UGMA assets are typically used to fund, like a child’s education.