The Uniform Gift to Minors Act and the Uniform Transfers to Minors Act both serve as custodial accounts and can be a great way for parents to store and protect assets for a minor until he or she reaches the age of majority. The age of majority is usually between the ages of 18 and 21 depending on the state you live in. It’s important to know what the difference is between these two types of accounts, which ultimately comes down to what can be held in each one.

A UGMA is limited to only financial products such as cash, stocks, mutual funds, bonds, and insurance policies. A UTMA account allows any form of property, including real properties, such as real estate, or even a car. Although it is more flexible, it’s important to know that not all states allow the use of UTMA accounts. UTMAs can be a great tool in savings for minors. Some of the benefits include easily being able to transfer assets to a minor. It’s easier to set up than a formal trust and the assets are protected from the parent’s creditors. These types of accounts keep the minor from accessing the funds before it’s needed. So, if you’re a parent and you’re looking to start a savings account or early education fund, UGMAs and UTMAs can be a great way to start.


Bobby Norman, CFP®, AIF®
Managing Director
Wealth Consultant
Email Bobby Norman here


Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.

Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.

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