Vermont Adopts the Uniform Transfer to Minors Act (UTMA)

In the spring of 2015, Vermont adopted The Uniform Transfers to Minors Act (UTMA). In doing so, it joins every other state in the union (except South Carolina) to use this law as a way to pass property to minors with a built-in adult custodian.

UTMA is a uniform law designed to make transferring property to minors easy for the gift givers, the custodians, and the institutions that hold the accounts. Because the UTMA is used in almost every state, it has become a standard way to leave property to minors.

When you leave property to a minor using UTMA (with a will, trust, beneficiary designation, or other instrument), you use the language provided by the law and name a custodian to manage the property until the child becomes an adult. Vermont has set the age of adulthood to 21 years. If you use an instrument that does not transfer the property until you die (like a will, trust, or life insurance policy), the property will transfer directly to the child if they have already reached the age of adulthood -- in that case, no custodian is needed. Otherwise, the property will be controlled by the named guardian until the minor reaches age 21.

Read Vermont House Bill 23 (2015).

Read more about Leaving Property to Minors.