Arizona's Definition of "Minor" Is Not What Most People Expect
Under most Arizona laws, the age of majority is eighteen. But the UTMA is different. For purposes of custodial transfers, a "minor" is anyone under twenty-one years of age, and an "adult" is anyone who has reached twenty-one. This means custodial accounts created under the UTMA can remain under the 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 the 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, along with any income and proceeds from that property. A "custodian" is the person designated to manage the property, and 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 act work smoothly. Understanding these definitions is important because the UTMA governs how gifts and transfers to children are held, managed, and eventually distributed.
