The Uniform Transfer to Minors Act (UTMA) allows a donor to give property, assets, or other resources to someone under the age of majority. A modified form of the Uniform Gift to Minors Act (UGMA), the UTMA provides a way to transfer property to a minor without the need for a formal trust.
The UTMA allows assets or other property to be managed by a custodian who is appointed by the donor. The property is then turned over to the minor when they become of legal age in the state where the gift was made. One benefit of the UTMA is that the transfer of property can be nontaxable until the minor reaches the age of majority.
In some cases, the UTMA can also allow the assets to be managed by a custodian. The custodian has fiduciary duties to manage the assets responsibly. In Florida, the custodian must give the minor the opportunity to terminate the agreement.
The UTMA is a broad piece of federal legislation, as it was intended to be fine-tuned by the states. There is individual variation between each state in how the UTMA is implemented. One notable exception is South Carolina, which has not accepted the UTMA.
If you are looking to utilize the UTMA in order to transfer property to a minor, you will need the help of a trusts & estates attorney.
An experienced trusts & estates attorney can help you set up the transfer of property to a minor while navigating the state-level modifications to the UTMA. In addition to transferring property legally, a trusts & estates attorney can help you transfer the property with limited taxation or loss of assets.
The best place to find a trust & estates attorney is Attorney at Law.
At AAL, our nationwide network of attorneys and law firms can match you with a trusts & estates attorney in your area. Our partners have the resources, legal expertise, and experience to fine-tune an estate plan to your specific needs.
In addition to having extensive resources and expertise, our partners excel in client care. Our partners will be straightforward and efficient, able to answer your questions and ensure your experience is an excellent one.
Don’t wait. Contact AAL today for a free, no-obligation consultation and secure your future.