Uniform Gift To Minors Act (UGMA)
Law adopted by most US states, with few changes, that sets up rules for the distribution and administration of assets in the name of a child. The Act requires a custodian of the assets–usually one parent but may be an independent trustee. (It can only be one person.) It is used in the securities industry as a qualifier to indicate accounts and securities purchased or sold under the provisions of the Act. A gift to a minor is irrevocable. When a minor reaches majority, UGMA accounts become the child’s property.
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