Uniform Transfers to Minors Act (UTMA)
Under the UTMA, an adult may make an irrevocable transfer to a minor (under 18 years of age). A custodian is appointed to manage and control the custodial property until the minor reaches the age of majority (18), if not later but under no circumstances beyond age twenty-one (21). Generally the transfer results in a tax advantage to the transfer or donor.
There are no minimum balance requirements. A UTMA account earns the same dividend rate as a regular savings account. Dividends are compounded and credited to the account quarterly on the average daily balance.