What is the age of majority for UTMA?
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Age of Majority and Trust Termination
| State | UGMA | UTMA |
|---|---|---|
| California | 18 | 18 |
| Colorado | 21 | 21 |
| Connecticut | 21 | 21 |
| Delaware | 18 | 21 |
How does a UTMA account work?
The Uniform Transfers to Minors Act (UTMA) allows an adult to transfer assets to a minor by opening a custodial account. This type of account is managed by an adult — the custodian — who holds onto the assets until the minor reaches a certain age, usually 18 or 21.
How old do you have to be to open an UTMA account?
Alabama and Nebraska set the age of majority to 19 and Mississippi sets it at 21. See the chart below to compare the age of majority and UTMA account age of majority in every state. UTMA accounts are custodial accounts, meaning that a custodian manages the funds in them until the minor comes of age.
When do you lose control of your child’s UTMA account?
But when your child reaches the age of majority – 18 or 21, or even older, depending on the state – you, as the custodian, lose all control over the account. The funds then belong to your child, and the child is the only one who can decide what happens to the money.
How old do you have to be to be a UTMA in Alabama?
State UGMA UTMA UTMA supersedes UGMA (*) Alabama 19 21 October 1, 1986 Alaska 18 21 January 1, 1991 Arizona 18 21 September 30, 1988 Arkansas 21 21 March 21, 1985
Is the termination age for UTMA the same as UGMA?
The termination date for each are different as well. While UGMA termination is at 18 years, the termination age for UTMA is 21. Further, UGMA accounts allow parents to donate gifts such as money, stocks, or life insurance. However, UTMA accounts only allow the donation of basic assets.
