The termination date for each is also different. While the UGMA`s RÉSILIATION is 18, the age of UTMA`s dismissal is 21. In addition, UGMA accounts allow parents to give gifts such as money, shares or life insurance. However, UTMA accounts only allow the donation of basic goods.  N.J.S.A. 46:38A-34; See also Colca v. Anson, N.J. Super. 405, 416 (App. Div.
2010) (“A child`s estate should not be used to fulfill the obligation of a financially viable parent to assist”); Cohen v. Cohen, 258 N.J. Super. 24, 30-31 (App. Div.) (“[A] Administrator, who is also a parent, cannot properly use the assets of a UGMA account to fulfill the parent`s legal obligations to a child if the parent is financially able to help the child.” In Ferraro, the Court of Appeal found that UTMA “transmitted by an irrevocable gift to… an administrator in favour of a minor.  For titles, such a gift is offered when the assignor registers the property in its own name, “essentially followed by the words: “as custodian of (the name of the miners) after the New Jersey Uniforme Transfers to Minors Act.”  Any transfer thus carried out “is irrevocable and custody is unenforceable in minors.”  Most of us have developed control agreements (AMS), including provisions that apply all or part of family allowances to cover the cost of education or other obligations related to children. This section deals with adequacy when these deposit funds are held in an account created under the New Jersey Uniform Transfers to Minors Act (UTMA).  The Transfers to Minors Act (UTMA) allows minors to obtain gifts such as money, patents, royalties, real estate and the visual arts without the assistance of a guardian or agent. A UTMA account allows the donor or designated custodian to manage the miner`s account until he or she is of age. UTMA also protects minors from the tax consequences on gifts up to a certain value.  ID. at 30-31, 609 A.2d 57.
In this context, the court upheld a court decision requiring a mother to reimburse her daughter for withdrawals from a UGMA account used for the cost of living, including clothing, food, shoes, dry cleaning bills, health insurance and medical services. Withdrawals for reimbursement of the mother`s legal fees related to her custody dispute with the child`s father were also inappropriate. The subsidiary does not dispute that the administrator uses UGMA assets for warehouses and schools. Id. UTMA is an extension of the Uniform Gift to Minors Act (UGMA), which was limited to the transfer of securities. Note that if UTMA offers the possibility of setting up a tax-exempt savings account for minor children, the estate is counted until the minor is detained as part of the custodian`s taxable estate. The UTMA was completed in 1986 by the National Conference of Commissioners of Single State Laws and adopted by most of the 50 states. It allows minors to receive gifts and avoid tax consequences until they become major for the state, which is usually 18 or 21 years old.
While UTMA offers the possibility of creating a tax-exempt savings account for minor children, assets are counted as part of the custodian`s taxable estate until the minor takes possession. If the administrator is suspected of breaching his fiduciary duties, the guardian, legal representative or adult parent of the minor may “ask the court to remove the custodian from what is still stolen and designate a legal custodian.”  These individuals may also “be brought to justice for . . . [a]n accounting by the custodian.  However, I believe that the protocol established by this proposed language is consistent with the evolution of the appeal division`s affairs, which are beginning to become more aware of the Newburgh factor than in the past.