Uniform Transfers to Minors Act
What is the Uniform Transfers to Minors Act?The Uniform Transfers to Minors Act or UTMA is a type of uniform act that the National Conference of Commissioners on Uniform State Laws drafted in the year of 1986 and that was put into place in most of the U.S. States. This act helps provide a guideline under which gifts can be made to a minor and this satisfies the Internal Revenue Service regarding taxes. This Act also allows for the donor of the gift to the minor to transfer the title to a guardian that will hold the gift until the minor reaches a certain age.
In the state of Arizona, if a person dies and has no will and leaves $50,000 to their two children, is there a law that requires that the children’s funds be used for specific things?If the money is placed in a Uniform Transfers to Minors Act account, then the money will fall under the law found here; http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/14/07662.htm&Title=14&DocType=ARS. There is generally a standard in which protects the account from misuse of funds by the guardian that is placed to manage the funds until the children reach the age that is set forth for them to receive the full amount.
What is the statute in the state of Delaware for an estate to be transferred to a minor?In the state of Delaware, the Uniform Transfer to Minors Act section 4504 states; A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to § 4509 of this title. With this act and section, the donor is allowed to transfer the title to a guardian that will help take care of the assets until the minor is of age to receive the assets.
If a grandparent wants to give their grandchild a small Individual Retirement Account (IRA) and name the parent as the guardian, does New Mexico have an age limit?In the state of New Mexico, there is a Uniform Transfers to Minors Act that allows the grandparent to name the parent as the guardian of the IRA account, and then there will be no set age limit in order for the grandchild to receive the funds from the IRA. If the funds will be used to pay for school and financial aid will be applied for as well, then the UTMA account would be considered as assets of the grandchild.
If a person dies without leaving a will and has two children and the grandparent wants to be guardian, is there a law that states that the serving parent should be the guardian?According to the Uniform Transfers to Minors Act a parent can petition the court to have the money placed into the account that draws interest for the minors until they reach the legal age. The surviving parent’s authority can be challenged by the grandparent if there is a legal trust issue. The parent may have to hire a lawyer to prove that they are a good choice to be the guardian of the minor’s money.
When a person dies and leaves a large sum of money to a minor, then the rules and regulations of the Uniform Transfers to Minors Act is an Act that is place to protect the minor. When a guardian or a person who gives the gift has questions regarding leaving the money to a minor or the rules of the Uniform Transfers to Minors Act, then consulting an Expert will give the person the answers that they seek.