Can I deposit UGMA or UTMA funds in a KAPT account?
KAPT allows custodians for minors under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act (UGMA/UTMA) to open KAPT accounts. The accounts are subject to certain restrictions, which are described in the Master Agreement. Custodians should consult a tax advisor about the consequences of opening and holding KAPT accounts, as well as legal counsel regarding their rights and responsibilities as custodians. Please call 888-919-KAPT and press option 1 for instructions on completing a KAPT application for a UGMA/UTMA account. What are the gift tax implications for a KAPT account holder? Contributions to KAPT are considered a completed gift for gift tax purposes. No federal gift tax would be imposed on a purchaser for gifts to a beneficiary which do not exceed the annual gift tax exclusion amount (currently $11,000). If an account holder makes up to $55,000 in contributions in a single year, the contributions can be treated as having been made ratably over five years. As with a
