The Uniform Transfers to Minors Act (UTMA) allows a person to make a gift to a minor child that is free of tax burdens. The UTMA was formerly called the Uniform Gifts to Minors Act. The custodian of a UTMA asset has discretion to give to the minor
child, or spend for the minor child, the amount of the gift the custodian determines equitable. The custodian cannot legally use any of the funds for their own personal benefit.
Budget money from the UTMA asset that is directly paid, at the custodian's discretion, to the minor child as nonexempt income in the amount actually received by the child.