Why the UTMA Defines "Minor" Differently
Under most laws, the age of majority is eighteen. But the Uniform Transfers to Minors Act is different. For purposes of custodial transfers under the transfers to minors act, a "minor" is anyone under 21 years of age. An "adult" is anyone who has reached that age. This means custodial property held under the act can remain under a custodian's control until the beneficiary turns twenty-one.
"Adult" means a person who is at least twenty-one years of age.
A.R.S. § 14-7651(1)This extended age threshold gives families more time to manage assets on behalf of a young person. It also means a custodian or successor custodian retains responsibility longer than many parents and grandparents realize when they first set up a custodial account.
Other Key Terms That Shape Custodial Transfers
The statute defines "custodial property" as any interest in property transferred to a custodian under the act. That includes any income and proceeds from that property. A "custodian" is the person designated to manage the property. A "transferor" is the person who makes the transfer.
"Custodial property" means an interest in property that is transferred to a custodian pursuant to this article and income from and proceeds of that interest in property.
A.R.S. § 14-7651(6)The definitions also cover financial institutions, brokers, benefit plans, and legal representatives. Each term is carefully scoped to make the rest of the UTMA work smoothly. The uniform transfers to minors framework replaced the older uniform gifts to minors act, also known as the gifts to minors act. Understanding these definitions is important because the minors act (UTMA) governs how gifts and transfers to children are held, managed, and eventually distributed.