Taxation with Representation

In honor of National College Savings Day / National 529 Day – which is Sunday, May 29 – let’s dive into a few savings and investment options that you can use to help fund your child’s higher education.

Let’s go over the basics

UTMA stands for Uniform Transfer to Minors Act, and UGMA stands for Uniform Gift to Minors Act. Both UTMA and UGMA accounts are custodial trust accounts whereby a grantor (e.g., a parent) can transfer assets into the trust for the benefit of a child. Custodial account means that the grantor, as the custodian, must manage the money as a fiduciary for the benefit ...