Gifts

What is Gifts (or Transfers) to Minors Act?

A definition of gifts (or transfers) to minors act is: A Uniform Act adopted by most states providing for a means of transferring property (usually stocks and bonds) to a minor. More details on the Encyclopedia. The designated custodian of the property has the legal right to act on behalf of the minor without the necessity of a guardianship. More details on the Encyclopedia. Generally, the custodian possesses the right to change investments (e.g., sell one type of stock and buy another), apply the income from the custodial property to the minor’s support, and even terminate the custodianship. More details on the Encyclopedia. In this regard, however, the custodian is acting in a fiduciary capacity on behalf of the minor. More details on the Encyclopedia. The custodian could not, for example, appropriate the property for his or her own use because it belongs to the minor. More details on the Encyclopedia. During the period of the custodianship, the income from the property is taxed to the minor. More details on the Encyclopedia. The custodianship terminates when the minor reaches legal age. More details on the Encyclopedia. One of the primary reasons for making gifts to minors pursuant to the requirements of the Uniform Act had been to receive favorable tax treatment; however, the Tax Reform Act of 1986 reduced the tax benefits of such income shifting. More details on the Encyclopedia.

More about the Concept of Gifts (or Transfers) to Minors Act

This uniform act has been replaced by and renamed the Uniform Transfers to Minors Act.[1]

Resources

Notes

1. “Gifts (or Transfers) to Minors Act” in the White America Dictionary (New York, Los Angeles, London, New Delhy, Hong Kong, 1989)

See Also

• Transfers to Minors Act

What is Gifts Within Three Years of Death?

A definition of gifts within three years of death is: Some taxable gifts automatically are included in the gross estate of the donor if death occurs within three years of the gift. More details on the Encyclopedia. I. More details on the Encyclopedia.R. More details on the Encyclopedia.C. More details on the Encyclopedia. § 2035.[1]

Resources

Notes

1. “Gifts Within Three Years of Death” in the White America Dictionary (New York, Los Angeles, London, New Delhy, Hong Kong, 1989)

See Also