A Uniform Transfers to Minor Act (UTMA) account is any type of financial account where an adult transfers assets to children under the age of 18. This is an irrevocable gift that is commonly invested in savings, mutual funds or brokerage accounts. When children turn 18 years old, the money is theirs without question. While UTMA accounts are always the child's money, many banks allow minors with identification and the ability to sign for themselves to have an account without an adult custodian, and allow UTMA accounts to transfer.
Liquidate stocks, bonds or mutual funds held in an UTMA account. Call the brokerage firm, place a sell order and request for the funds to be sent to the address of record.
Find a bank that allows minors to have a personal savings account. Most do, but each bank has its own regulations, possibly with different age limits. Confirm the details to make sure that the child qualifies.
Take the funds, with your minor child, to your local bank. Speak with a new account representative to open the account.
Confirm that the child understands the rights and responsibilities with the account. Have the child sign all paperwork.
Deposit the funds into the minor's savings account.
If the bank does not allow minor savings accounts that are not UTMA designated, you may need to maintain the UTMA account until you find one that does.
- Social Security Administration. "SI 01120.205 Uniform Transfers to Minors Act." Accessed June 8, 2020.
- Studentaid.gov. "What Is the Net Worth of Your Investments?" Accessed June 8, 2020.
- Merrill. "Can I Transfer Funds From My Custodial Accounts to a 529 (And Vice Versa)?" Accessed June 8, 2020.
- Schwab. "Custodial Accounts." Accessed June 8, 2020.
- If the bank does not allow minor savings accounts that are not UTMA designated, you may need to maintain the UTMA account until you find one that does.
With more than 15 years of professional writing experience, Kimberlee finds it fun to take technical mumbo-jumbo and make it fun! Her first career was in financial services and insurance.