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.
Any money or property transferred under the UTMA is under the control of a custodian until the minor child reaches age 21. The custodian has discretion to give to the minor child, or spend for the minor child, the amount of the gift the custodian determines equitable. The child automatically receives control of the money when they reach age 21.
Review the status of the UTMA asset at redetermination and whenever assets are reviewed.