Bridging Two Eras of Custodial Transfers
Arizona adopted the UTMA to replace the older UGMA. This change created a practical question: what happens to transfers made under the old law? Section 14-7671 answers that directly.
This article applies to a transfer within the scope of section 14-7652 made after its effective date if either of the following is true: 1. The transfer purports to have been made under the Arizona uniform gifts to minors act. 2. The instrument by which the transfer purports to have been made uses in substance the designation "as custodian under the Arizona uniform gifts to minors act" or "as custodian under the uniform transfers to minors act" of any other state and the application of this article is necessary to validate the transfer.
A.R.S. § 14-7671In practical terms, older custodial accounts set up under the UGMA are not left in legal limbo. Arizona's current UTMA rules step in to govern those transfers. They just need to meet the requirements of section 14-7652.
Why This Matters for Families Managing Custodial Accounts
Custodial accounts are a common way to hold assets for a child. Parents, grandparents, and other family members often set them up years in advance. When the law changed from UGMA to UTMA, this statute made sure existing accounts stayed valid.
If you manage an older account that references the "Uniform Gifts to Minors Act," this section confirms that Arizona's current rules apply. No extra paperwork or re-designation is needed.