• The Uniform Gifts to Minors Act (UGMA) provides a way to transfer financial assets to a minor without the time-consuming and costly establishment of a formal trust.

  • The UGMA account is managed by an adult custodian until the minor beneficiary reaches the age of majority, at which point they take over the management of the account.
  • Income earned in a UGMA account is not tax-protected, but is taxed at a lower “child tax” rate up to a certain amount.