Important Info Regarding Trusts for Minors

 California Uniform Transfers to Minors Act Most people know that they can set up a minor’s account under the California Uniform Transfers to Minors act (CUTMA).  This kind of account will allow an adult (called a Custodian) to handle the money while the child is under the age of eighteen.  The person who sets up the account can say that the child is not entitled to demand the funds until any age between eighteen and twenty-one.  This is the limit established under CUTMA for gifts during the life of the donor.

 

The Most Important Thing to Understand

What people often do not understand is that it is imperative that any will or trust have a savings provision that provides for a Custodian to hold money for a child who is not yet the age of eighteen.  These gifts that happen at the death of the donor can be held up to any age between eighteen and twenty-five.  When the child reaches the stated age he or she can demand payment in full.

For either kind of gift (either during life or after the death of the donor) the Custodian can make payments of the income and principal for the benefit of the donee (the child) during the time that the child is not able to demand payment of the entire amount.

Read CA Uniform Transfers to Minors Act

More about Guardianship for a Minor

 

estate_planning_living_trust_preparation_losgatos_Diane M. Brown, Esq.
Working every day to keep my clients out of court!
It’s your money… Let’s keep it that way!
Call 408.376.2755

 

 

This blog contains general information and is not meant to apply to a specific situation. Please seek advice of counsel before proceeding as each case is unique.

Photo Credit: Diane Brown’s photo by Lisa Whalen and a special thank you to Corbis via the Microsoft Image Library for the use of additional images found in this blog post.

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