Uniform gifts to minors act / uniform transfers to minors act accounts


Because money placed in these accounts is owned by the child, earnings are generally taxed at the child’s tax rate, which is typically lower than the tax rate for adults. Unlimited contributions are also permitted, so you can save as your budget allows. The dividends and/or interest paid on the UGMA/UTMA account will be reported under the minors social security number, though you should consult with your own attorney as to the tax consequences that result from using such an account, as the credit union does not give tax advice.

How Is A UGMA/UTMA Account Different Than A Regular Savings Account?

A UGMA or UTMA is a youth savings account where the primary account owner is a minor and instead of having a joint owner, there is a custodian on the account. With a joint owner, both owners have equal access to the account. However, with a custodian, only the custodian has access to the account until the minor reaches the age of majority.

When the primary owner reaches the age of majority (21 for UGMA, 25 for UTMA), the custodian is responsible for completing an Account Change Request form to update the account to a Primary Savings Account and give the Primary Owner control of the account and access to funds.

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For more information or help opening your account, visit one of our convenient branch locations or call (800) 849-8431.

* Restrictions and credit qualifications apply.