Transferring an UTMA account Generally, the UTMA account transfers to the beneficiary when he or she becomes a legal adult, which is usually 18 or 21. However, the age of adulthood may be defined differently for custodial accounts, like UTMAs or 529 plans, depending on your state.

When must a custodial account be transferred?

Understanding the Uniform Transfers to Minors Act (UTMA) The gifts are usually transferred when the minor reaches 18 or 21 years of age, although in some states it is possible to extend this to 25.

Can I withdraw from my child’s UTMA account?

Under the Uniform Transfers to Minors Act (UMTA), money deposited into a UTMA account cannot be withdrawn for any reason—except by the child at the appropriate age. In the United States, a child’s money does not belong to the child’s parents or guardians.

Can a parent transfer money from a UTMA to a UGMA?

The gifts made to a UTMA/UGMA are irrevocable – a child cannot simply return them to the giver. However, a parent is allowed to transfer the funds to another custodial account for the minor’s benefit, such as a 529 college savings account.

What happens if I want to cancel a UTMA?

Assets can be moved if it’s for the benefit of the child. Under the UTMA, gifts made to these accounts are irrevocable, so there’s no undoing them. The custodian, such as a parent, manages the account in the minor’s interest, but the minor automatically receives full control of the account when they reach their state’s age of majority. 1 

What to do if your child has a UTMA account?

One option in dealing with this issue is to ask the child to transfer the assets to an irrevocable trust for the child’s benefit. Another possibility is to go to court and ask the court to intervene and establish a trust for the child or appoint a conservator. UTMA’s can be useful.

How old do you have to be to open UTMA account?

A Uniform Transfers to Minor Act (UTMA) account is any type of financial account where an adult transfers assets to children under the age of 18. This is an irrevocable gift that is commonly invested in savings, mutual funds or brokerage accounts.