Question

Under the uniform gifts to minors act, securities contributed by the donor must be transferred to

Answer 1

Under the Uniform gifts to minors act, securities contributed by the donor must be transferred to the name of the custodian for the minor.

Uniform Gifts to Minors Act ( UGMA) are generally accounts set up by an adult on behalf of a minor. All the deposits & assets in this type of account are transferred to the minor when he/she attains the age of 18 - 21. In this account parents can't be the custodian of the account. Someone else can manage the account on your child's behalf. After attaining the legal age the minor owns the account & can use it in his own way. Family,friends or anyone else can donate but it must be transferred to the name of the custodian for the minor as the minors' age is below the legal age.