UGMA and UTMA

Before you get started

Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts are created for the benefit of a minor with an adult as custodian. The custodian acts on behalf of the minor until the child reaches the age of majority.

• Individual statutes of the state where the account is established determine whether the account is an UGMA or an UTMA and the age of majority
• The age of majority when the minor can claim the assets as their own differs according to each state’s UGMA/UTMA regulations
• The account’s registration reflects whether it is an UGMA or an UTMA and the age of majority
• UGMA/UTMA assets can be used for anything that benefits the minor. They are not limited to education expenses.
   

UGMA and UTMA account updates

As a custodian, you can log in to your UGMA or UTMA account to:

• Update personal information, including the mailing address, phone number and email address on the account
• Exchange or rebalance shares within the account
• Download and print quarterly statements
   

Custodian and successor custodian changes

For requirements for changing the custodian on the account or adding/changing the successor custodian on the account, contact us.

Transferring an UGMA and UTMA account to the beneficiary

Custodians of UGMA and UTMA accounts are responsible for transferring assets to the beneficiary once they reach the age of majority. Visit Transferring UGMA and UTMA assets for more information.

UGMA and UTMA contributions

As a custodian, you can log in to your UGMA or UTMA account or contact us to make a one-time Automated Clearing House (ACH) purchase or set up/update automatic investments with existing bank information. If you do not have a bank account already on file for ACH purchases, link your bank account online or by completing the Add/Update Bank Information form (PDF).  

Any individual or entity can contribute money to UGMA and UTMA accounts. They can make a check payable to American Funds Service Company®, include the account number and investment instructions and mail the check to the service center near them.

There is no deadline for or limit on investments into UGMA and UTMA accounts. However, investments may count as gifts in the year they are made. Therefore, an investment must be made by December 31 to count as a gift for that year. Visit Gifting shares for information on the Internal Revenue Service’s annual gifting limits and how to gift shares from another account at Capital Group.

Visit Investments and contributions for more information and guidelines.

UGMA and UTMA withdrawals

As the custodian, you can withdraw money from your UGMA and UTMA accounts at any time. Most withdrawals can be requested by logging in to your account or over the phone. You can also make a request by completing the Request to Sell Shares form (PDF).

Withdrawals can be sent to an existing bank account on file. To add your bank account for withdrawals, complete the Add/Update Bank Information form (PDF) and include a copy of a voided check.

The total amount of withdrawals from UGMA and UTMA accounts and applicable cost basis information are reported under the beneficiary’s Social Security number on Form 1099-B, available in late January.

Visit Withdrawals and distributions for more information and guidelines.

Exchanges and rebalances

As a custodian, you can log in to your UGMA or UTMA account or contact us to process one-time exchanges and/or rebalances. You can also set up/update automatic exchange and/or rebalance plans on the account.

Visit Exchanges and rebalances for more information and guidelines.