All Definitions »Uniform Gift to Minors Act / UGMA

Uniform Gift to Minors Act / UGMA Meaning & Definition

Pass Rate

Over 25 years and 400,000 exams

Assured Success

If you use our practice exams

Chat & Call Support

We are with you every step of the way

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.

Choose Your Exam