A UGMA account stands for the "Uniform Gift To Minors Act." I believe that every state has a law having to do with money being transferred to minors and since minors cannot really own money, they created an account referred to as the uniform gift to minors act. There is a custodian or Guardian named to oversee the funds for the benefit of the child and I believe that in some states the money becomes the child's at age 18 and others at age 21. As a professional fee-only financial advisor, we have not been using uniform gift to minors accounts for many years and instead we have been using 529 plans as an alternative as they have significant advantages over the more traditional uniform gift to minors act. I hope this helps and good luck
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