What is the Uniform Transfers to Minors Act?
Transferring property to minor children, such as money or other valuables, can be problematic. Most children do not have enough (or any) experience in dealing with valuable assets so they would be more likely to mismanage it. Third parties, such as financial institutions, will not risk doing business with minors because even though minors can enter into contracts, they can also void them without any consequences. Even so, there can be many estate planning reasons for transferring assets to minors.
What is the Uniform Transfers to Minors Act (UTMA)?
