The Uniform Transfers to Minors Act enables minors to receive property or gifts without a guardian or trustee’s aid.Gifts can include money, patents, royalties, real estate, fine art or other substantial assets. The act was drafted in 1986 and expanded upon the Uniform Gift to Minors Act, which was limited to security transfers. An appointed manager, usually the gift giver, oversees the account until the minor reaches a certain age, which varies by state. UTMA accounts enable minors to benefit from the ownership of securities and other assets they aren’t typically permitted to hold, while avoiding the costs and complexities of establishing a trust. Suppose a benefactor wants to help fund her great grandson’s college education. She opens a UTMA account in the boy’s name and names herself its custodian so someone else can’t use the funds for another purpose. She puts $12,000 into the account, which will grow tax free. Note that assets will be counted as part of the custodian’s taxable estate until the minor takes possession. Also, the transfer is irrevocable. The minor who’s supposed to use an account to pay for college may have another plan when he comes of age. A UTMA account may affect the amount of financial aid for which its beneficiary is eligible. As with any investment, careful consideration is important when opening a UTMA account.