Alaska Designation of Successor Custodian by Donor Pursuant to the Uniform Transfers to Minors Act
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FAQ
The Uniform Gifts to Minors Act and Uniform Transfers to Minors Act allow minors to own assets (like stocks, bonds, mutual funds, annuities, or insurance policies) held in a custodian's name, without needing an attorney to set up a special trust fund.
Under the rules of the UTMA, the assets belonging to the minor are controlled by a ?custodian? until the minor reaches a specified age. The parent will decide in his or her will the age at which the funds must be transferred from the custodian to the child, but can choose only an age between 18 and 25.
As noted above, there are many types of property that can be transferred to minors, including: Cash. Stocks and bonds. Patents. Royalties. Real estate. Fine art. Mutual funds and other investments. Intellectual property1.
The Uniform Transfers to Minors Act ("UTMA") allows a person to transfer property to a custodian for the benefit of a minor child. The custodian manages and invests the property for the child and pays as much of the property to the child or for the child's benefit as the custodian chooses.
In Oregon, the age of majority for UTMA property ranges from 18 to 25 years of age, depending on the method by which the property transferred to the custodian and the intent of the transferor.
The term Uniform Transfers to Minors Act (UTMA) refers to a law that allows a minor to receive gifts without the aid of a guardian or trustee. Gifts can include money, patents, royalties, real estate, and fine art.
For purposes of UTMA, a ?minor? is not always someone under age 18. In Washington, when making a gift or bequest to an UTMA custodian, you can specify that the arrangement can last until the beneficiary reaches age 25. The custodian of the UTMA can use the assets in the account for the ?use and benefit? of the minor.
UTMA allows the property to be gifted to a minor without establishing a formal trust. The donor or a custodian manages the property for the minor's benefit until the minor reaches a certain age. Once the child reaches a specified age set by the state, the child will have full control over the property.
