Uniform Gifts to Minors Act - UGMA
- Uniform Gifts to Minors Act - UGMA
- An act that allows minors to own property such as securities. The IRS allows persons to give so many thousands of dollars to another person without any tax consequences. If this recipient person is a minor, the UGMA allows the minor to own the assets without an attorney setting up a special trust fund. Under the UGMA, the ownership of the funds works like it does with any other trust except that the donor must appoint a custodian (the trustee) to look after the account.
The donor can appoint him/herself or another person to be custodian. The custodian, who has a fiduciary duty to manage the minor's assets wisely, can use the funds to buy securities on behalf of the minor. Access to the gift must be given to the minor when he or she reaches the age of majority, either 18 or 21 (sometimes even 25), depending on UGMA state law. Should a donor acting as the custodian die before the custodial property is transferred to the minor, the entire custodial property is included in the donor's taxable estate.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Uniform Gifts to Minors Act — See Uniform Transfers to Minors Act abbrv. UGMA The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. Uniform Gi … Law dictionary
Uniform Gifts to Minors Act — The Uniform Gifts to Minors Act, commonly known as UGMA, is an act in some states of the United States that allows assets such as securities, where the donor has given up all possession and control, to be held in the custodian s name for the… … Wikipedia
Uniform Transfers to Minors Act — The Uniform Transfers To Minors Act (UTMA) is a uniform act drafted and recommended by the National Conference of Commissioners on Uniform State Laws in 1986, and subsequently enacted by most U.S. States, which provides a mechanism under which… … Wikipedia
Uniform Gifts to Minors Act — ( UGMA) Legislation that provides a tax effective manner of transferring property to minors without the complications of trusts or guardianship restrictions. Bloomberg Financial Dictionary … Financial and business terms
Transfers to Minors Act — The Uniform Transfers to Minors Act (UTMA) revises and replaces the Uniform Gifts to Minors Act (UGMA). As expanded, the Act allows the transfer of any type of property, real or personal, tangible or intangible, and wheresoever located (within or … Black's law dictionary
UGMA — abbrv. Uniform Gifts to Minors Act. See Uniform Transfers to Minors Act The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. UGMA … Law dictionary
UGMA — Uniform Gifts To Minors Act Единый закон о дарениях несовершеннолетним … Финансово-инвестиционный толковый словарь
UGMA — See: Uniform Gifts to Minors Act … Financial and business terms
UGMA — abbr. Uniform Gifts to Minors Act … Dictionary of abbreviations
custodian — cus·to·di·an n: an individual entrusted with guarding and keeping property or having custody of a person: as a: the warden of a prison b: a person given custody of a child by court order c: a person named to manage a child s property under the… … Law dictionary
