How a Gift Transfer to a Minor Works
Sometimes the simplest approach works best. This statute lets you transfer property directly to a custodian for a minor through a gift or a power of appointment.
Unlike a nomination under Section 14-7653, which can be changed, a transfer under this section is permanent. Once it is complete, you cannot take it back.
A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor pursuant to section 14-7659.
A.R.S. § 14-7654The steps to complete the transfer depend on the type of property. Securities, real estate, and cash each have their own rules under the UTMA.
What This Means for Your Planning
Grandparents and family members often use this tool to transfer assets during their lifetime. It works instead of waiting for a will or trust to kick in. The custodian manages the property until the minor reaches the age set in the arrangement.
Because the gift is permanent, you cannot reclaim the property. The custodian must manage it for the minor's benefit. When the minor reaches the age of majority, the property transfers to them outright.
For larger gifts, a trust may offer more control over how and when the minor gets the assets.