Exchange Currency

UGMA

Uniform Gift to Minors Act. Laws adopted by most states allowing an adult to contribute to a custodial account in a minor's name without having to establish a trust or name a legal guardian. Thus, minors can have securities bought and money invested in their names, but the custodian is responsible for managing the funds in the account. The custodian has a fiduciary duty to manage the account prudently, but once the minor reaches the age of majority, he/she has complete rights to the funds in the account. The assets are the legal property of the minor, and the parent has no legal control over the uses of the proceeds of the account. All withdrawals from the account are taxed at the minor's rate. Putting money into a UGMA account can negatively impact the chances for financial aid, since financial aid officers weigh children's assets much more heavily than parents' assets.

Related information about UGMA:
  1. Uniform Gifts to Minors Act - Wikipedia, the free encyclopedia
    The Uniform Gifts to Minors Act (UGMA) is an act in some states of the United States that allows assets such as securities, where the donor has given up all ...
     
  2. FinAid | Saving for College | UGMA & UTMA Custodial Accounts
    (The age of trust termination is 18 to 21, depending on the state and whether it is an UGMA or an UTMA. Most UGMAs end at 18 and most UTMAs at 21, but it ...
     
  3. UGMA/UTMA
    The Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act ( UTMA) allow a minor to own securities in an account without forcing families to ...
     
  4. UGMA/UTMA Accounts
    The Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act ( UTMA) are types of custodial accounts that are set up by an adult on behalf of a ...
     
  5. Uniform Gifts to Minors Act (UGMA) Definition | Investopedia
    An act that allows minors to own property such as securities. The IRS allows persons to give so many thousands of dollars to another person without any tax ...
     
  6. Shifting Ugma Money to a 529: the Pros and Cons
    Jun 18, 2010 ... UGMA accounts have some advantages over 529 plans. Follow these tips at Savingforcollege.com to decide if it's worth making the change for ...
     
  7. Vanguard - saving for college - Vanguard UGMA/UTMA account
    Custodial accounts under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) allow you to save on behalf of a child for education ...
     
  8. UGMA & UTMA Custodial Accounts for Minors
    Free online guide to custodial accounts under the uniform transfers to minors or gifts to minors act (UTMA or UGMA).