Definition of Uniform Gift to Minors Act / UGMA

uniform gift to minors act sets forth guidelines for the gifting of cash and securities to minors and for the operation of accounts managed for the benefit of minors. Once a gift is given to a minor, it is irrevocable.

Applying "Uniform Gift to Minors Act / UGMA" to Securities Exams:

Minors can not own securities in their own names because minors can not enter into legally binding contracts. The conditions under which a security is bought or sold represents a legally biding contact. As such the securities must be held in the name of a nominal owner for the benefit of the minor.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....