They invest $10,000 in an investment plan titled "under the
Uniform Transfers to Minors Act." A parent may be the custodian of the plan, but income earned is gross income to the child unless it is used to provide for the Parkers' support obligations for Susie, such as food.
Parents who wish to shift investment income to their children can establish custodian accounts under the
Uniform Transfers to Minors Act or the Uniform Gifts to Minors Act.
ONE OF THE LEAST-COMPLICATED LONG-term methods of funding education for children is a gifting plan under the Uniform Gifts to Minors Act (UGMA) or the
Uniform Transfers to Minors Act (UTMA).
Accounts for a child with a disability established under a state's
Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) generally are not counted as available resources for SSI eligibility purposes until the child reaches the adult age specified under the applicable Act.
On the other hand, if the goal is to set up a simple fund to be used for a child or grandchild before college, the donor may open a bank or brokerage account under the
Uniform Transfers to Minors Act (UTMA) of his or her state of residence.
(139) For example, the Virginia Uniform Transfer to Minors Act states: "This chapter applies to any transfer that refers to the
Uniform Transfers to Minors Act or this chapter ...