Financial Planner

Answer: A - The Uniform Transfers to Minors Act is an educational savings plan vehicle that is a gift to a child without the expense of a trust. Parents transfer assets to children to reduce the income taxes on their earnings. Money transferred to a custodial account is considered an irrevocable gift. Once the child reaches the age stipulated by law, usually 18 or 21 years of age, the money is the child’s to use as they please. The child is not required to attend college for the funds.