How Florida’s Uniform Transfers to Minors Act Works

Florida’s Uniform Transfers to Minors Act, found in Chapter 710 of the Florida Statutes, lets you move money or property to a child without creating a formal trust. A custodian you name holds and manages the assets on the child’s behalf until the child reaches the age set by the statute, which can be 18, 21, or as late as 25 depending on how the transfer is made.

How the Transfer Is Made

A UTMA transfer takes effect through a specific title. The account, security registration, or deed must read substantially: “[Name of custodian] as custodian for [name of minor] under the Florida Uniform Transfers to Minors Act.”¹ Banks and brokerage firms have standard UTMA forms that handle this titling. For other property, a signed transfer document following the same format works.

The statute covers a wide range of assets: securities, money on deposit, life insurance and annuity contracts, real property, and essentially any other kind of property conveyed through a written transfer instrument.¹

Once made, the transfer cannot be undone. The custodial property is “indefeasibly vested in the minor” from the moment of transfer.² You cannot pull the money back, redirect it to another child, or change the beneficiary. The custodian controls how the assets are managed, but ownership sits with the minor from day one.

When the Child Takes Control

The age at which custodianship ends depends on how the assets got into the account.

Custodianship ends at 21 for property transferred directly by a living person under Section 710.105 or through a will or trust under Section 710.106. For these transfers, the person making the transfer can also push the termination age out to 25.
Custodianship ends at 18 for property transferred by an obligor or financial institution under Section 710.107, or by certain other adults acting for the minor under Section 710.108.

If the minor dies before reaching the applicable age, custodianship ends and the property passes into the minor’s estate. The option to extend to 25 only applies to the two transfer types under Sections 710.105 and 710.106; it is not available for every UTMA transfer.³

When the custodianship ends, the custodian transfers whatever remains to the former minor. A bank simply retitles the account. Real estate needs a new deed out of custodial title. A final accounting of the years of activity lets the beneficiary take over with a clear picture of the assets.

The Custodian’s Job

A custodian has the same powers over the property that any unmarried adult owner would have — buying, selling, investing, reinvesting, all without court approval — but every action must be for the minor’s benefit.⁴

Florida holds the custodian to a prudent person standard. If the custodian was chosen for professional investment expertise, the standard rises to match that expertise. Custodial assets must be kept separate from personal ones, with records of every transaction and enough documentation to prepare the minor’s tax returns.⁵ Mixing custodial money with personal money is a fast route to legal trouble.

Custodians can be reimbursed for reasonable expenses from the custodial property. A custodian who is not the original transferor under Section 710.105 can also charge reasonable compensation for services each year. A person who transferred their own property into the account under Section 710.105 cannot take compensation — only expense reimbursement is allowed for them.⁶

The broad powers do not shield a custodian who mismanages the assets. If custodial money is used for personal purposes, investments are handled recklessly, or records are not kept, the custodian can be personally liable. Any minor who has reached 14, a parent, a legal representative, or the original transferor can ask a court for a formal accounting and a determination of liability.⁷

What the Minor Can Do Before Reaching Age

The child owns the property but does not run it. Their rights during the custodianship are protective. Once the minor turns 14, they may inspect the custodian’s records at reasonable intervals.⁵ Before 14, a parent or legal representative can request the records on the minor’s behalf.

The custodian may use the property for the minor’s support, education, and general welfare. This flexibility is one of the main reasons families choose UTMA accounts over simple savings. The custodian decides how much and when, but every expenditure has to genuinely serve the minor.

Naming a Successor Custodian

Custodians step down for all sorts of reasons: illness, a move, or simply wanting out. A custodian can name a successor at any time by signing a written designation in front of a witness who is not the successor. The successor must be a trust company or an adult who is not the original transferor under Section 710.105.⁸

If a custodian dies or becomes incapacitated without having named a successor, the process depends on the minor’s age. A minor who has reached 14 can designate an adult family member, their own conservator, or a trust company through the same witnessed-instrument process.⁸ For younger children or where no one steps up, the transferor, a family member, or another interested person has to petition the court, which adds time and expense.

Planning the succession up front avoids that. A will, trust, deed, or beneficiary designation can nominate substitute custodians in order, so the next in line takes over automatically if the first cannot serve.⁹

Taxes

Three tax questions run through every UTMA account.

Income Tax on the Account’s Earnings

Because the child owns the property, the investment income is reported on the child’s return. The kiddie tax caps the family benefit. For 2026, the first $1,350 of a child’s unearned income is tax-free, the next $1,350 is taxed at the child’s rate, and anything above $2,700 is taxed at the parent’s marginal rate.¹⁰ The kiddie tax applies to children under 19, or under 24 if they are full-time students who do not provide more than half of their own support. Growth-oriented investments that generate little current income keep most accounts under the threshold. Bond-heavy or dividend-heavy holdings can push earnings past $2,700 quickly and erase the tax advantage.

Gift Tax on Contributions

Each deposit into a UTMA account is a completed gift. The annual gift tax exclusion for 2026 is $19,000 per recipient.¹⁰ A married couple can together contribute $38,000 to one child’s account in a year without filing a gift tax return. Contributions above the exclusion count against the lifetime exemption and require Form 709, even if no tax is due.

Estate Inclusion if the Transferor Is Also the Custodian

If the person who funded the account also serves as custodian and dies before the child reaches the termination age, the full account balance can be pulled into that person’s taxable estate. The IRS position is that the transferor-custodian kept enough control, through the power to make distributions, to trigger inclusion. Naming an independent custodian, such as the other parent or a trust company, eliminates the risk. For larger accounts, this is one of the most consequential choices in setting up the transfer.

Effect on College Financial Aid

UTMA balances hurt need-based financial aid more than the same money would in a parent’s name. The FAFSA treats a UTMA as the student’s asset, and student assets weigh more heavily in the Student Aid Index calculation than parent assets, which convert at roughly 12%.¹¹

Two common responses: spend the UTMA down on legitimate expenses for the minor (tuition, a car, other support) before filing the FAFSA, or roll the assets into a custodial 529, which the FAFSA counts as a parental asset for dependent students. The 529 still names the minor as beneficiary and follows 529 withdrawal rules, but the aid treatment improves substantially. Families with meaningful UTMA balances should look at this well before junior year of high school, when FAFSA reporting begins.

What Creditors Can and Cannot Reach

UTMA accounts have some creditor protection, but less than people often assume. Claims arising from custodial contracts, from ownership of custodial property, or from torts occurring during the custodianship can be pursued against the custodial property itself.¹² The custodian avoids personal liability by identifying themselves as acting in a custodial capacity and by not being personally at fault. The minor is likewise shielded from personal liability tied to owning the property unless personally at fault.

The custodian’s personal creditors generally cannot reach the account, since the assets belong to the minor. That protection weakens if the custodian has been dipping into custodial funds for personal use. And when the transferor is also the custodian, creditors, including the IRS, have in some cases reached the account to collect the transferor-custodian’s own debts. Naming someone other than the transferor as custodian removes that exposure.

1
Official Internet Site of the Florida Legislature. Florida Code 710.111 – Manner of Creating Custodial Property and Effecting Transfer; Designation of Initial Custodian; Control
2
Official Internet Site of the Florida Legislature. Florida Code 710.113 – Custodial Property
3
Florida Senate. Florida Code 710.123 – Termination of Custodianship
4
Official Internet Site of the Florida Legislature. Florida Code 710.115 – Powers of Custodian
5
Florida Senate. Florida Code 710.114 – Care of Custodial Property
6
Official Internet Site of the Florida Legislature. Florida Code 710.117 – Custodian’s Expenses, Compensation, and Bond
7
Florida Senate. Florida Code 710.122 – Accounting by and Determination of Liability of Custodian
8
Florida Senate. Florida Code 710.121 – Renunciation, Resignation, Death, or Removal of Custodian; Designation of Successor Custodian
9
Florida Senate. Florida Code 710.104 – Nomination of Custodian
10
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill
11
U.S. Department of Education Federal Student Aid. 2025-2026 Student Aid Index (SAI) and Pell Grant Eligibility Guide
12
Florida Senate. Florida Code 710.119 – Liability to Third Persons