Uniform Laws Update: Uniform Transfers to Minors Act Is Under Review

Benjamin Orzeske (Chief Counsel, Uniform Law Commission) published an Article in the ABA Probate & Property Magazine, Uniform Laws Update: Uniform Transfers to Minors Act is Under Review, Probate & Property Magazine, September/October 2023. Provided below is an introduction to the Article:

The Uniform Transfers to Minors Act (UTMA) provides a simple way to transfer property to a custodial account for the benefit of a minor. It has been adopted in all 50 states, the District of Columbia, and the US Virgin Islands.

The current version of the UTMA dates to 1983, when it was approved by the Uniform Law Commission (ULC) as an update to the predecessor Uniform Gifts to Minors Act. The ULC first approved the predecessor act in 1956, which was based on an earlier model act sponsored by the major stock exchange firms to allow gifts of stock to minor recipients. The UTMA expanded on these earlier acts by including more types of property and more methods of transferring the property.

Uniform laws are reviewed periodically to determine whether the statutes are functioning as intended and whether courts have misconstrued the intended effect of any provision or attempted to fill gaps in the law. A ULC study committee is currently reviewing the UTMA and several non-uniform UTMA amendments that certain states have enacted over the past 40 years. The study committee will ultimately produce a report recommending whether the UTMA should be amended….