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

By Sam Swenson, CFA, CPA – Updated Oct 19, 2025 at 9:29PM

Key Points

  • UTMA accounts allow minors to own property, including real estate, managed by a custodian.
  • Income over $2,300 from UTMA accounts is taxed at the parent's rate due to the kiddie tax.
  • Once minors reach their state's age of termination, typically 18-21, they fully control UTMA assets.

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