Uniform Transfers to Minors Act: Difference between revisions
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The '''Uniform Transfers To Minors Act''' ('''UTTMA''') is a [[Uniform Act|uniform act]] drafted and recommended by the [[National Conference of Commissioners on Uniform State Laws]] in 1986, and subsequently enacted by most [[U.S. State]]s, which provides a mechanism under which gifts can be made to a [[minor (law)|minor]] without requiring the presence of an appointed guardian for the minor, and which satisfies the [[Internal Revenue Service]] requirements for qualifying a gift of up to $13,000 for exclusion from the [[gift tax]].<ref>{{cite journal|last=Smith|first=Constance D.|title=Retaining Control of Gifts to Minors: UTMA and IRC 2503(c) Trust Options|journal=Colorado Lawyer|year=2005|month=November|volume=34|issue=39|url=http://en.wikipedia.org/enwiki/w/index.php?title=Uniform_Transfers_to_Minors_Act&action=submit|accessdate=1 October 2011}}</ref> It is an extension of the [[Uniform Gifts to Minors Act]] (UGMA). |
The '''Uniform Transfers To Minors Act''' ('''UTTMA''') is a [[Uniform Act|uniform act]] drafted and recommended by the [[National Conference of Commissioners on Uniform State Laws]] in 1986, and subsequently enacted by most [[U.S. State]]s, which provides a mechanism under which gifts can be made to a [[minor (law)|minor]] without requiring the presence of an appointed guardian for the minor, and which satisfies the [[Internal Revenue Service]] requirements for qualifying a gift of up to $13,000 for exclusion from the [[gift tax]].<ref>{{cite journal|last=Smith|first=Constance D.|title=Retaining Control of Gifts to Minors: UTMA and IRC 2503(c) Trust Options|journal=Colorado Lawyer|year=2005|month=November|volume=34|issue=39|url=http://en.wikipedia.org/enwiki/w/index.php?title=Uniform_Transfers_to_Minors_Act&action=submit|accessdate=1 October 2011}}</ref> It is an extension of the [[Uniform Gifts to Minors Act]] (UGMA). |
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The donor can serve as a custodian, rather than transferring the property to someone else to hold for the minor. However, the value of custodianship property is included in a donor’s gross estate if the donor dies while serving as the custodian.<ref> Stuit v. Commissioner, 54 T.C. 580 (1970), aff'd, 452 F.2d 190 (7th Cir.1971) |
The donor can serve as a custodian, rather than transferring the property to someone else to hold for the minor. However, the value of custodianship property is included in a donor’s gross estate if the donor dies while serving as the custodian.<ref> Stuit v. Commissioner, 54 T.C. 580 (1970), aff'd, 452 F.2d 190 (7th Cir.1971) |
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[[Category:Property law]] |
[[Category:Property law]] |
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[[Category:Uniform Acts|Transfers to minors]] |
[[Category:Uniform Acts|Transfers to minors]] |
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Revision as of 23:27, 1 October 2011
The Uniform Transfers To Minors Act (UTTMA) 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 gifts can be made to a minor without requiring the presence of an appointed guardian for the minor, and which satisfies the Internal Revenue Service requirements for qualifying a gift of up to $13,000 for exclusion from the gift tax.[1] It is an extension of the Uniform Gifts to Minors Act (UGMA).
The Act allows the donor of the gift to transfer title to a custodian who will manage and invest the property until the minor reaches a certain age. The age is generally 21, but is different in some states (usually 18 in those cases) [1]. In the interim, the custodian can also make payments for the benefit of the minor out of the corpus of the gift.
The donor can serve as a custodian, rather than transferring the property to someone else to hold for the minor. However, the value of custodianship property is included in a donor’s gross estate if the donor dies while serving as the custodian.<ref> Stuit v. Commissioner, 54 T.C. 580 (1970), aff'd, 452 F.2d 190 (7th Cir.1971)
References:
- ^ Smith, Constance D. (2005). "Retaining Control of Gifts to Minors: UTMA and IRC 2503(c) Trust Options". Colorado Lawyer. 34 (39). Retrieved 1 October 2011.
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