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The Uniform Transfers To Minors Act (UTMA) is a uniform act drafted and recommended by the National Conference of Commissioners on Uniform State Laws in 1986, and subsequently enacted by all U.S. States, which provides a mechanism under which gifts can be made to a minor without requiring the presence of an appointed guardian for the minor, and which satisfies the Internal Revenue Service ...
Custodial accounts come in a number of forms, one being an account set up for a minor, since the minor is under the legal age of majority. The custodian is often the minor's parent. In the U.S., this type of account is often structured as a Coverdell ESA, allowing for tax-advantaged treatment of educational expenses.
The maximum income allowable to receive this credit is fairly high, so many families who are over-income for other programs may be eligible. The qualifying child must be younger than 17. Caregivers do not have to be the child's legal guardian or custodian, but the child must be defined as a dependent by the IRS. [12]
In the decades leading up to the 1970s child custody battles were rare, and in most cases the mother of minor children would receive custody. [5] Since the 1970s, as custody laws have been made gender-neutral, contested custody cases have increased as have cases in which the children are placed in the primary custody of the father.
In 2006, a legal status of "special guardianship" was introduced (using powers delegated by the Adoption and Children Act 2002) to allow for a child to be cared for by a person with rights similar to a traditional legal guardian, but without absolute legal separation from the child's birth parents. [30]
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