Who could start a UTMA?
Any persons desiring to give a minor a gift without requiring a court appointed guardian or construction of a trust. These other alternatives are costly and require detailed records and tax filings. UTMA saves time and money by not requiring a person to go to court in order to distribute property from the account. Instead, a custodian is established. A custodian can be any adult related or not related to the minor. What is a custodian? A custodian manages the assets on behalf of the minor and can invest the assets as the custodian feels is proper. The custodian is not the owner of the account. The minor is considered the owner of the assets and the minor’s social security number is used for tax reporting. The custodian is the only one who can transact on the account as well as close it. The minor is the beneficiary and cannot transact on the account. What kind of gifts qualify and how may they be used? Any assets can be given to a minor and there is no limit to the amount of money that
