Common use of Uniform Transfers to Minors Accounts Clause in Contracts

Uniform Transfers to Minors Accounts. An account created under the Uniform Transfers to Minors Act (UTMA) is one that is opened when an irrevocable gift has been made to a custodian over the age of 18 for the benefit and on behalf of a minor. The minor does not have access to the account until he or she reaches age 21 (or age 18, depending on how the gift was made). The custodian alone—unless there is a court order that says otherwise—makes deposits, withdrawals, transfers, and other decisions about how the account is managed. We are not required to ask the custodian about the use or purpose of any transaction. If the custodian dies, we may suspend the account until we receive instructions from any person authorized by law to withdraw or transfer funds or a court order authorizing withdrawal or transfer. You may wish to consult your tax advisor or attorney before opening a UTMA account.