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Uniform Gifts to Minors Act (UGMA)

Uniform Gifts to Minors Act (UGMA) definition - business

Uniform Gifts to Minors Act (UGMA)

Uniform state laws that facilitate irrevocable gifts to a minor by eliminating the requirement of a guardian or trust. A custodian, who may be the donor, is appointed to manage the gift, but full rights to the principal and income reside with the minor, who gains control upon reaching the applicable age (usually 18 or 21). Earnings are reported to the IRS using the minor's Social Security number.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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