What is the Uniform Gifts to Minors Act?

The Uniform Gifts to Minors Act is a piece of legislation that allows minors to own property. This law is regularly referenced when referring to minors owning securities, such as shares of stock. According to this rule, minors do not have to have the securities in a trust in order to own them. Instead, they can be owned by the minor with an adult custodian.

When a gift of stock is given to a minor, it must be in an account that has an adult custodian listed. The custodian of the account does not have to be the parent of the child. It does not have to be the individual that gave them the stock. The person that gave the gift could appoint a custodian to help the minor.

As a custodian, you have to do what is best for the interest of the minor. The custodian can use money in the account to purchase additional securities on behalf of the minor. When the minor turns 18, they have to gain full access to the account. This means that minors do not have the ability to do anything with the assets until they become adults.

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