Connecticut Designation of Successor Custodian by Donor Pursuant to the Uniform Transfers to Minors Act
Description
Form popularity
FAQ
Briefly, a transfer of property to a child under the UTMA takes the form of an irrevocable gift to a "Custodian" for the child. The Custodian has powers and duties over the property similar to those the law imposes on trustees. The Custodian must unconditionally release the property to the child at age 21.
Under the laws that govern custodial accounts, including the Uniform Transfers to Minors Act (UTMA), account custodianship ends and the beneficiary becomes eligible to assume control of the account at a specified age?typically 18 or 21, depending on the state.
The Uniform Gifts to Minors Act provides a way to transfer financial assets to a minor without the time-consuming and expensive establishment of a formal trust. A UGMA account is managed by an adult custodian until the minor beneficiary comes of age, at which point they assume control of the account.
If appointing a new custodian, the signature of the previous custodian, a death certificate, or an official court document must be provided. If the former minor's legal name has changed, please provide the previous and new names where indicated.
If a minor has reached the age of twenty-one (21) and seeks to withdraw the funds from the UTMA account of which he/she is the beneficiary, the minor must contact the custodian, as the custodian is the only person authorized to make withdrawals or close the account.
If a donor acting as the custodian dies before the account terminates, the account value will be included in the donor's estate for estate tax purposes. If a minor dies before the age of majority, a custodial account is considered part of the minor's estate and is distributed ing to state law.
The custodian is responsible for managing the UTMA account and any of its investments, similar to how a trustee manages a trust. The custodian can be the donor (the person who opened or donated to the account), another adult (like a grandparent), or a financial institution.
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.
