Suppose you want to transfer a capital property or asset to a minor, which they can only come to possess legally upon reaching the age of maturity. In that case, an attorney might suggest setting up a trust fund, the most common vehicle for this purpose. However, this is the realm for those who can afford to hire the required services to process all the paperwork and fees, which may eat into the asset's value in question.
Alternatively, you can create a Uniform Transfers to Minor account, as governed by the UTMA (Uniform Transfers to Minor Act), with a Transfer to Minor order. This method is more comfortable, faster, and cost-efficient. You only have to fill out the form and appoint a custodian who will oversee the account until the minor reaches maturity as recognized by law.
What Is a Transfer to Minor?
You use a Transfer to Minor to transfer assets to a minor by setting up a UTMA account. All you have to do is appoint a third-party custodian responsible for overseeing the account until the minor reaches the age of maturity.
The age of maturity depends on the state where the Transfer to Minor is executed, though it's usually 18 or 21. Setting up a UTMA account is the quickest and most effortless way to transfer assets to a minor. You can use it instead of a trust fund.
The custodian has the authority to manage the minor's assets up until they are of age. Still, the custodian also has a fiduciary duty to manage in the best interests of the minor. One exciting feature of the law is the custodian's ability to use the asset to pay child support on behalf of the minor as needed.
Other Names for Transfer to Minor
Depending on your state, a Transfer to Minor may also be known as:
- Uniform Transfers to Minors Act
- Uniform Gifts to Minors Act
Who Needs a Transfer to Minor
If you want to transfer capital assets to a minor without involving attorneys and setting up a trust fund, you can use a Transfer to Minor to do it. It is often used by parents, grandparents, and other family members who want to transfer an investment asset to a minor to which they will not be able to squander until they are of age.
The only hard requirement is to appoint a trustworthy custodian, who will have to sign the document. They can be a friend, family member, or anyone else, in that you could also appoint a professional custodian (such as an attorney or a company), which will, of course, come with a slew of attendant fees.
Why Use 360 Legal Forms for Your Transfer to Minor
Customized for you, by you
Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Transfer to Minor.
Specific to Your Jurisdiction
Laws vary by location. Each document on 360 Legal Forms is customized for your state.
Fast and easy
All you have to do is fill out a simple questionnaire, print, and sign. No printer? No worries. You and other parties can even sign online.
How to Create a Transfer to Minor with 360 Legal Forms
Creating a Transfer to Minor legal is easy, even if you have never heard of it before. You can use our bulletproof template and fill in the necessary information.
Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.
What Information Will I Need to Create My Transfer to Minor
To create your document, please provide:
- Effective Date: The date of the transfer.
- Governing State: Specify the state whose law is applicable.
- Transferor Details: The legal name and contact information of the party transferring the asset or assets.
- Custodian Details: The custodian's legal name and contact information holding the assets on behalf of the minor.
- Minor Details: The legal name, birthday, and contact information of the minor receiving the assets.
- Transferred Assets: Describe the assets involved.
- The Age of Maturity: State when is the minor to acquire the property, which will depend on the state's definition of legal age.
- Additional Terms: You can add other terms, such as if the custodian can use the assets or cash equivalent to pay child support for the minor.
Transfer to Minor Terms
- The Uniform Transfers to Minors Act: The UTMA is a 1986 federal law adopted by most states to allow a minor to receive assets or gifts without involving a guardian or trustee. The transferor can choose a custodian whom they trust and who can manage the assets until the minor reaches the age of maturity.
- The Age of Maturity: The legal age when someone reaches adulthood with all the following citizen rights and responsibilities. The age of maturity varies by state, most commonly 18 or 21.
- Custodian: In the context of a Transfer to Minor, the person appointed to manage the minor's assets gifted as long as the minor is not yet of age. You can select a personal connection to act as a custodian rather than a professional custodian, standard with a trust fund.
Transfer to Minor Signing Requirements
The Transfer to Minor does not have to be notarized, although it can help have at least one witness to the signing. However, it can be useful to notarize the document to thwart off potential disputes to the signature's validity, which can be especially important if the minor still has a way to go before coming of age.
What to Do with Your Transfer to Minor
Print at least three Transfer to Minor copies, one for the transferor, custodian, and minor. For your security, you can give another copy to the family lawyer.