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Custodial Account Form

UGMA/UTMA Uniform Gifts to Minors/Uniform Transfers to Minors A/K/A "Custodial Accounts"

NYS Law - 1956

  1. Minor's Social Security Number
    a. Minor pays tax on dividends
    b. Minor must be a member of the credit union
    c. Up to $10,000 may be deposited per grantor without requiring a gift tax
  2. Irrevocable
    a. Trustee must use funds only for the benefit of the minor
    b. Minor may not touch funds during life of trust
  3. Terms
    a. Only one trustee ( custodian), only one beneficiary
    b. Trust must:
      i. Be a blood relative to beneficiary
      ii. Maintain records
      iii. Invest prudently
      iv. Make discretionary payments to minor in some cases
    c. Age of major is 18 unless form is amended
  4. Tax Reform Act of 1986
  5. a. The first $1,000.00 worth of income earned from new and existing accounts belonging to a child under age 14 will be taxed at the child's tax rate
  6. b. Any earned income above that will be pated at the parent's highest rate.