Uniform Transfer to Minors Act

Uniform Transfer to Minors Act (UTTMA) an irrevocable gift to a person under 21 years of age (a minor)

• Adult custodian acts on behalf of the minor
• Only one custodian and one minor per account
• Dividends are taxable income to the minor child, not the custodian.
• When the minor reaches age 21, the custodian must transfer the funds to a new account established in the former minor’s name, if eligible.