Uniform Gifts to Minors Act
Uniform Gifts to Minors Act, or UGMA for short, is a special law that allows grown-ups to give money or other assets to kids who are still too young to handle them on their own. The law helps to set up a special account or trust where the money can be kept safe until the child gets older.
When a person decides to give a gift to a kid under the UGMA law, they become the "custodian" of the account. This means that they are responsible for taking care of the money or assets until the child is old enough to manage it on their own.
Once the child reaches the age of majority (usually 18 or 21, depending on the state), they become the owner of the account and can use the money or assets however they want. However, until then, the custodian has control over the account and can use the money to help the child with things like education or other expenses.
The UGMA law is meant to be simple and easy to use, so that both the grown-ups and kids can understand it. It's a great way to help provide financial security and support for a child's future.
When a person decides to give a gift to a kid under the UGMA law, they become the "custodian" of the account. This means that they are responsible for taking care of the money or assets until the child is old enough to manage it on their own.
Once the child reaches the age of majority (usually 18 or 21, depending on the state), they become the owner of the account and can use the money or assets however they want. However, until then, the custodian has control over the account and can use the money to help the child with things like education or other expenses.
The UGMA law is meant to be simple and easy to use, so that both the grown-ups and kids can understand it. It's a great way to help provide financial security and support for a child's future.