Uniform Transfers to Minors Act (UTMA)

The Uniform Transfers to Minors Act (UTMA) is a law that allows adults to transfer assets, like money or stocks, to a minor without needing a formal trust. The assets are managed by an adult custodian until the minor reaches a specified age, typically 18 or 21, depending on the state. This ensures the minor benefits from the assets, often for education or other expenses, while allowing the custodian to manage them responsibly. UTMA accounts offer a simple way to save for a child's future while providing tax advantages in some cases.