
Transfers to Minors:
• Don’t give gifts to minors because can’t contract/give receipt
• Remedy is court-appointed guardian – BAD
• Trust was traditionally guardianship avoidance technique IF you have the money, but expensive
• Uniform Transfers to Minors Act (UTMA) – all states have something like this
– Very successful and simple
– “Poor man’s trust” for kids – Prop 141.010
– Minor holds title but has custodian
– Banks, brokerages
– Irrevocable – Prop 141.012
– Small amounts of income, taxed at kids bracket if under $x and they’re under 14
– See Prop 141.013, 141.012, 141.015
– Prop 141.015a1 – can use trust for what you’d be required to do – pretty broad authority
– Prop 141.021 – termination
– Age of majority or death
– 21 years – if by gift (Prop 141.005) or will (Prop 141.006)
• True authority for custodianship
– Other age of majority (e.g. 18) – Prop 141.007 – fiduciary may transfer to custodianship
• No real authority for custodianship
– Prop 141.008 – TP payor
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