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What Is the Uniform Transfers to Minors Act (UTMA)?

By Sam Swenson, CFA, CPA – Updated Oct 9, 2024 at 11:12AM

Key Points

  • UTMA accounts allow minors to receive and own property including real estate, managed by a custodian.
  • Income over $2,300 from UTMA accounts is taxed at parent's rate; can impact child's future Social Security.
  • At state's age of termination, UTMA funds transfer to the minor, becoming their sole property.
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