The Uniform Transfers to Minors Act (UTMA) allows minors to receive gifts, such as money or real estate, without the need for a guardian or trustee, with the custodian managing the assets until the minor reaches a specified age. This legal framework simplifies the process of transferring assets to minors while providing tax advantages and flexibility in managing the assets for the minor's benefit.
Custodial accounts are financial accounts set up by an adult for the benefit of a minor, allowing the minor to own assets while the custodian manages the account until the minor reaches the age of majority. These accounts are often used for saving and investing on behalf of a child, providing a flexible way to transfer wealth without the need for a trust fund.
Fiduciary responsibility is a legal and ethical obligation for one party to act in the best interest of another, typically in financial matters, ensuring loyalty and care. This duty requires the fiduciary to prioritize the beneficiary's interests above their own, maintaining trust and transparency in all dealings.