Answers About Uniform Gifts to Minors
The following answer explains Uniform Gifts to Minors Accounts (UGMA).
What is a Uniform Gift to Minors Account (UGMA)?
A UGMA provides a child under the age of 18 (a minor) with a way to own investments. The money is in the minor's name, but the custodian (usually the parent) has the responsibility to handle the money in a prudent manner for the minor's benefit. The parent cannot withdraw the money to use for his or her own needs.