Thursday, May 14, 2009
Bradley R. Coppedge (Partner, Hatcher Stubbs, LLC, Columbus, GA) has written a new article entitled Transfers to Trust and Use of UTMA Custodial Accounts, Prob. & Prop., May/June 2009, at 34.
The Transfers to Minors Act (TMA) of each state, based on the Uniform Transfers to Minors Act, provides for management, use, and disposition of property gifted or otherwise transferred to a minor. Transfers under the Act are irrevocable and leave the donor with no legal or equitable rights in the property. Title is registered name of a custodian for the benefit of the minor. This article provides a brief overview on the use of custodial funds generally, along with a more detailed analysis custodian's ability delay distributions beyond age 21 through conversion of the custodial account to an irrevocable trust, or by other means.