Custodial Accounts (UGMA/UTMA) are financial accounts that facilitate the transfer of assets to minors without restrictions typically found in other specialized plans, although they do not provide specific tax benefits like those of a 529 plan.
The Uniform Gifts to Minors Act (UGMA) is a U.S. legislation that allows minors to receive gifts and inheritances without the need for a guardian or trustee. It simplifies the process of transferring property to minors and provides for custodial accounts.
A detailed exploration of the Uniform Transfers to Minors Act (UTMA), explaining its purpose, how it functions, the types of assets it covers, legal considerations, and practical examples.
