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A.R.S. § 14-7651

Key Definitions Under Arizona's Uniform Transfers to Minors Act

Verified April 4, 202657th Legislature, 1st Regular Session

The Uniform Transfers to Minors Act (UTMA) uses specific definitions for terms like 'adult,' 'minor,' 'custodian,' and 'custodial property.' Notably, a minor is anyone under 21 years of age, not eighteen. These definitions shape how custodial accounts and transfers work throughout the act.

Title 14, TRUST ADMINISTRATION

azleg.gov

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.

In this article, unless the context otherwise requires: 1. "Adult" means a person who is at least twenty-one years of age. 2. "Benefit plan" means an employer's plan for the benefit of an employee or partner. 3. "Broker" means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others. 4. "Conservator" means a person appointed or qualified by a court to act as a general, limited or temporary guardian of a minor's property or a person legally authorized to perform substantially the same functions. 5. "Court" means the superior court. 6. "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. 7. "Custodian" means a person designated pursuant to section 14-7659 or a successor or substitute custodian designated pursuant to section 14-7668. 8. "Financial institution" means a bank, trust company, savings institution or credit union, which is chartered and supervised under state or federal law. 9. "Legal representative" means an individual's personal representative or conservator. 10. "Member of the minor's family" means the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle or aunt, whether of the whole or half blood or by adoption. 11. "Minor" means a person under the age of twenty-one years. 12. "Person" means an individual, corporation, organization or other legal entity. 13. "Personal representative" means an executor, administrator, successor personal representative or special administrator of a decedent's estate or a person legally authorized to perform substantially the same functions. 14. "State" includes a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico and a territory or possession subject to the legislative authority of the United States. 15. "Transfer" means a transaction that creates custodial property under section 14-7659. 16. "Transferor" means a person who makes a transfer under this article.

This page provides general legal information about Arizona statutes and is not legal advice. For guidance on how this law applies to your situation, speak with a qualified attorney.

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