How Do You Set Up An UGMA UTMA Account?
One of the best ways to transfer money to a minor is to set up a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account that will hold the money in trust for the child until he reaches the age of majority. After reaching that age, the young person may then take the assets from the account (cash, securities, property) and use it for whatever purpose he sees fit. Fill out an online application at one of the many brokerages or mutual-fund companies and mail it in to complete the enrollment process. Save yourself the hassle of going to the post office. Many companies allow you to transfer money from your bank account directly into the UGMA or UTMA account. Decide whether a UGMA or UTMA account is the correct investment tool for your situation. These accounts are best used for transferring small amounts of money to a minor and holding it until she reaches the age of majority. Often, trusts are better solutions if you will be making larger gifts, so check with a
