Uniform Gifts to Minors Act (UGMA)

The Uniform Gifts to Minors Act (UGMA) is a legal framework allowing adults to transfer assets, like money or securities, directly to a minor without setting up a trust. The custodian manages the account until the minor reaches a specified age, at which point they gain full control. UGMA helps simplify gifting, offers potential tax benefits, and is commonly used for education savings or early investments, providing a straightforward way to support minors’ financial future while maintaining legal clarity and control during their minority years.