Kids.
We love ‘em.
Lots.
And so, if you have children or grandchildren, you may be wondering about transfers to minors and Florida’s Uniform Transfer to Minors Act (UTMA).
You probably stay up at night, not because the kids don’t sleep through the night yet, but because you are pacing the floor trying to figure out if you can transfer money or property to your children or grandchildren.
So, can you?
Well, the answer is…
Yes, BUT…
You need to do it correctly.
You can transfer money or property to a minor, but not outright.
For instance, you do not want to name a minor as a beneficiary or leave money or property to a minor directly.
Why?
Because a minor does not have the legal capacity to manage money or property. So leaving them money outright causes all kinds of complications and unnecessary expense.
Then how can you leave your children or grandchildren money?
By using Florida’s Uniform Transfers to Minors Act (UTMA).
We cannot provide a detailed exposition on the UTMA in a short post (so please consult an estate and probate lawyer for more detailed information on this topic), but we can outline the basics to give you a little knowledge regarding what the Uniform Transfers to Minors Act is, and how it works.
So here we go.
Florida’s Uniform Transfers to Minors Act
Briefly, Florida’s UTMA is a law that simplifies transferring assets to minors. UTMA accounts provide some of the same advantages of a traditional trust but are generally less expensive and less complex.
A UTMA account can be used if either:
- the person transferring the property (i.e., the “transferor”), or the minor, or the custodian is a Florida resident,
Or
- if the property in the account is located in Florida.
Instead of creating a trust, you create an UTMA account for the minor. Once property is transferred to the UTMA account, the assets, which are controlled by a designated custodian for the minor’s benefit, legally belong to the minor. Much like a trust, the custodian (like a trustee) is a fiduciary who manages, invests, and distributes the assets in the account for the minor’s benefit and in accordance with the terms of the account.
What Can Be Transferred Under Florida UTMA
Florida law allows many types of property to be transferred to a minor under UTMA, including:
- Bank and brokerage accounts
- Uncertificated or certificated securities
- Life insurance or annuities
- Real estate
- Titled personal property (vehicles, boats, etc.)
Who Can Serve as Custodian & How to Name One
You can name a custodian in a will, trust, deed, or beneficiary designation. It’s wise to name a successor custodian as backup. Titling typically uses the words: “as custodian for (name of minor) under the Florida Uniform Transfers to Minors Act.”
Taxes & FAFSA: Quick Guide
- Gift tax annual exclusion: Up to $19,000 per beneficiary in 2025 ($38,000 for married couples electing split gifts).
- Kiddie tax: A child’s unearned income over $2,600 may be taxed at the parents’ rate.
- FAFSA/financial aid: UTMA/UGMA accounts are treated as student assets (assessed more heavily). 529 plans for dependent students are treated as parent assets (assessed at a lower rate).
Checklist: Setting Up a Florida UTMA
- Choose a custodian and a successor custodian
- Decide whether to extend to age 25 at creation (see notice rules below)
- Calendar the 21st-birthday notice window if extending to 25
- Coordinate with college financial-aid and tax planning
- Keep account statements and cost basis records
- Consider a trust instead for special-needs planning or long‑term control
Here are 2 Things to Know About Transfers to Minors and Florida’s Uniform Transfer to Minors Act.
-
UTMA accounts are limited in what they can do.
While a UTMA can be a great option for transferring property to minors, one of the things you should know is that the UTMA is limited in what it can do, especially when compared to a trust.
One major limitation is that in Florida, a UTMA will terminate, at the latest, on the beneficiary’s 25th birthday. (For more on this, see below.) In contrast, a trust can last far longer into a person’s adulthood if that is desired. Thus, a UTMA may not suit your purpose if you want the minor to receive the assets at a later time, or if you want to preserve the property for more than one generation.
Another limitation is that the terms of a UTMA account are not specifically tailored to meet a grantor’s objectives or directions as they are in a trust. Basically, with a UTMA account, the custodian must simply use the asset for the minor’s benefit. Other than that, there are no detailed or specific limitations or instructions that govern the administration of the account.
UTMA vs. 529 vs. Trust (At‑a‑Glance)
| Feature | UTMA | 529 Plan | Trust |
| Control | Custodian until 18/21/25 | Parent/account owner | Trustee (custom terms) |
| When child gains control | 18/21/25 (see below) | Never (owner controls) | Custom (any age/conditions) |
| Use of funds | Any benefit of child | Qualified education only | Custom (education, support, etc.) |
| Financial‑aid impact | Student asset (higher impact) | Parent asset (lower impact for dependents) | Depends on trust type |
| Tax notes | Child’s income; kiddie tax may apply | Tax‑free for qualified education | Varies by trust structure |
Bottom line: Use a UTMA for simple gifts and near‑term needs; consider a 529 for education; choose a trust for custom ages, asset protection, or special‑needs planning.
-
It ends when the minor reaches the legal age of majority – which can vary.
Another thing you should know about the Florida’s Uniform Transfers to Minors Act is that the account will terminate when the minor reaches the state’s “legal age”, and at that time, the property belongs outright to the (now former minor) young adult.
Whether the account terminates at age 18, 21, or 25 (in Florida), all depends.
In Florida, “legal age” varies according to how the property was transferred.
- If the transfer was made under the terms of a Florida Last Will and Testament (“Will”) as a gift, or if a trust expressly created the UTMA account, the account will end when the minor reaches age 21.
- If the account was not specifically created but came into being due to intestacy or because of a trust, then the account terminates at age 18.
Note that in Florida, a UTMA can last until the beneficiary turns 25, if the transferor expresses a clear intent that the account continue to the age of 25.
However, regardless of the transferor’s intent or desires, when the beneficiary turns 21, in Florida he has an “absolute right to compel” distribution of the account. That means that the beneficiary can close the account, even if it says the account is to last until age 25, and can exercise his right to have the property distributed to him/her.
Florida UTMA Termination Table (18 / 21 / 25)
| How the UTMA was created | Default termination | Can it run to 25? | 21‑year “compel” right | Special notice requirement at 21 |
| Gift, will, or trust | 21 | Yes, if 25 is set at creation | Yes | To limit the 21‑year compel right when extending to 25, deliver written notice 30 days before to 30 days after the 21st birthday, and keep the “wait” period open at least 30 days after 21 or notice delivery (whichever is later). |
| By executor, trustee, or obligor (not expressly created) | 18 | No | N/A | N/A |
Thinking about leaving property to your children or grandchildren doesn’t have to keep you up at night. Talk to an experienced estate and probate lawyer to find out what estate planning strategies are best for you and your loved ones.
21st‑Birthday Notice Checklist
- Calendar the 21st birthday six months in advance
- Prepare written notice with a clear “wait‑until‑25” statement
- Deliver within the statutory window (30 days before to 30 days after age 21)
- Ensure the fixed period in the notice does not end before 30 days after age 21 or notice delivery
- Keep proof of delivery and file in your estate plan binder
Special Situations
- Special‑needs/SSI or Medicaid: A UTMA is generally not a countable resource before majority, but becomes countable after the child reaches Florida’s UTMA age of majority. Consider a special needs trust instead of, or in addition to, a UTMA.
- Minor named as beneficiary: Avoid leaving assets to a child outright. Use UTMA beneficiary wording (naming a custodian) or name a trust as the beneficiary to prevent court intervention.
Thinking about leaving property to your children or grandchildren doesn’t have to keep you up at night. Talk to an experienced estate and probate lawyer to find out what estate planning strategies are best for you and your loved ones.
FAQs
- What is a Florida UTMA?
A simple way to title assets to a custodian for a minor so an adult can manage them until the minor takes control under Florida law. - Can I make a Florida UTMA last until age 25?
Yes, but only for transfers made by gift or under a will or trust, and 25 must be set at creation. - Can my child force a payout at 21 even if the UTMA says 25?
Yes. Unless you deliver a timely written notice around age 21 using the statutory window. - What age applies if the UTMA was created by an executor, trustee, or obligor?
Age 18 (no option to extend to 25). - What assets can go to a minor under UTMA?
Cash, brokerage accounts, insurance/annuities, real estate, and titled personal property. - Is a UTMA better than a trust?
UTMAs are cheaper and simpler; trusts offer more control, longer timelines, and better protection. - How does a UTMA affect college financial aid?
It’s a student asset on the FAFSA; a dependent student’s 529 is a parent asset and usually hurts aid less. - What’s the gift‑tax limit for UTMA contributions?
Up to $19,000 per beneficiary in 2025 ($38,000 for married couples who elect to split gifts). - Does the kiddie tax apply to UTMA earnings?
Yes, when the child’s unearned income exceeds IRS thresholds (around $2,600 currently). - Can a custodian move UTMA property into a trust?
In some cases, a custodian may transfer UTMA assets into a 2503(c) minor’s trust when appropriate.
Talk to Our Estate Planning Attorneys
Our team here at SJF Law Group works hard to ensure that your wishes will be followed, and your loved ones taken care of when you are gone. Our estate planning lawyers expertly guide individuals and families through the complex probate process and capably handle all aspects of the creation, administration, and settlement of estates and trusts. When you work with our Florida estate planning attorneys at SJF Law Group, you get more than just an estate plan: you get peace of mind.
As trusted estate planning lawyers, we serve families in the vibrant communities of Plantation, Fort Lauderdale, Boca Raton, West Palm Beach, and Miami, FL. We are also pleased to offer the options of both in-person and virtual appointments throughout Florida to make our services accessible no matter where you are located.
If you want to discuss your specific situations with one of our estate planning lawyers, do not hesitate to reach out to our law firm at 954-580-3690. You can also fill out our contact form.