How Can I Transfer Ownership of Assets?
UGMA/UTMA Custodial Accounts (Uniform Gifts/Transfers to Minors Act)
This act allows you to transfer ownership of assets to your child without needing to establish a more costly trust.
While not specifically designed for educational funding, these accounts can be advantageous as they allow you to accumulate funds in your child’s name.
Earnings from these investments may be taxed at your child’s lower rate (certain limits apply).
There are no annual contribution limits, but keep in mind that gifts into the account are subject to annual gifting rules.
Transferring assets may lower the value of your portfolio, thus allowing you to avoid higher taxes.
You may invest the funds on behalf of your child. We can provide you investment advice that suits your goals for your child.
As a custodian, you have many investment choices to choose from, including stocks, bonds and other investments.
These accounts are not specific college savings plans, and there are several noteworthy issues to think about.
You lose control of the funds when the child reaches the age of majority.
Contributions to the account are irrevocable.
Your child may use the funds for any purpose.