QUESTION PRESENTED
Under the Oregon, Alaska, and Idaho Uniform Transfers to Minors Acts (UTMA), at what
age will UTMA property be countable as either income or a resource for Supplemental
Security Income (SSI) purposes?
BRIEF ANSWER
In Oregon, the age of majority for UTMA property ranges from 18 to 25 years of age,
depending on the method by which the property transferred to the custodian and the
intent of the transferor.
In Alaska, the age of majority for UTMA property ranges from 18 to 25, depending on
the method by which the property transferred to the custodian, the nature of the property,
and the intent of the transferor.
In Idaho, the age of majority ranges between 18 and 21, depending on the property’s
transfer method.
SUMMARY OF FACTS
Current POMS states that UTMA property is countable as a part of a claimant’s income
or resources once the claimant reaches age 18. See POMS SI SEA 01120.205. The Regional
Office requested a legal opinion as to whether that POMS is accurate.
ANALYSIS
In order to be eligible for SSI, a claimant’s qualifying resources or income cannot
exceed the dollar value set by statutory limits. 42 U.S.C. § 1382(a)(1)(A), (B) &
(3)(B); 20 C.F.R. §§ 416.202(d), 416.1201, 416.1205; accord POMS SI 01110.003(A).
The Uniform Transfers to Minors Act (UTMA) authorizes a custodian to hold property
on behalf of a minor. 39 Am. Jur. 2d Guardian and Ward § 104 (2018). During custodianship,
the minor has few rights over the property. Id. Under agency policy, property transferred
to minors under the UTMA does not qualify as income or a resource until the minor
reaches the age of majority. POMS SI 01120.205(D)(3).
Oregon, Alaska, and Idaho adopted versions of the UTMA. Or. Rev. Stat. §§ 126.805
to 126.886; Alaska Stat. §§ 13.46.010 to 13.46.999; Idaho Code §§ 68-801 to 68-825.
In each state, the age of majority (and the end of the custodianship) depends on largely
the method by which the property was transferred to the custodian, and, if applicable,
the type of property or whether the transferor authorized a later date.
A. Oregon
In Oregon, the age of majority ranges from 18 to 21 years of age, with the possibility
of extending the age of majority to 25 years.
For property transferred to a custodian for the benefit of a minor by an irrevocable
gift, an irrevocable exercise of a power of appointment, a will, or a trust, the default
age of majority is 21. Or. Rev. Stat. §§ 126.816 . 126.819, 126.869(1). The age of
majority may extend up to age 25 for those types of transfers, if a later age is specified
by the transferor or the authorizing will or trust. § 126.872.
In contrast, the age of majority is 18 for property transferred without authorization
from a will or trust. §§ 126.822, 126.869(2). Additionally, the age of majority is
18 for property transferred by a conservator. Id. The age of majority is also 18 if
the property is transferred by a person who holds the property of, or owes a debt
to, a minor without a conservator. §§ 126.869(2),126.826.
B. Alaska
The age of majority in Alaska ranges from 18 to 21 years of age, and may extend to
25 years of age.
In Alaska, the age of majority is 21 for property transferred by irrevocable gift
or irrevocable exercise of a power of appointment, as well as for property transfers
authorized by will or trust. Alaska Stat. §§ 13.46.030, 13.46.040, 13.46.190(1). For
property transferred by the foregoing methods, the age of majority may extend up to
25 years if authorized by the transferor, or by the will or trust. § 13.46.195(d),
(e).
The age of majority is 18 if the property is transferred without authorization by
a will or trust. §§ 13.46.050(a), 13.46.190(2). It is also 18 if the property is transferred
to a custodian by a conservator, or for minors without a conservator, by a person
who holds the property of, or owes a debt to, a minor. § 13.46.050(b), 13.46.060,
13.46.190. For stock or membership in a native corporation that a minor is entitled
to receive, the age of majority is likewise 18. § 13.46.085(e).
Notably, in Alaska, a custodian may extend the age of majority, regardless of the
type of transfer, but the minor has a right to compel distribution. §§ 13.46.190,
13.46.197. If the minor does not compel distribution within a specific period[1] , however, the age of majority is extended. § 13.46.197(c).
C. Idaho
In Idaho, the age of majority ranges from 18 to 21 years of age.
The age of majority is 21 years of age if the property is transferred by an irrevocable
gift or by the irrevocable exercise of a power of appointment. Idaho Code §§ 68-804,
68-820(1). The age of majority is also 21 if the transfer is authorized by will or
trust. §§ 68-805, 68-820(1).
The age of majority is 18 if the property is transferred without authorization from
a will or trust or for property transferred to a custodian from a conservator. §§
68-806, 68-820(2). If property is transferred by a person who owes a debt to or holds
property for a minor without a conservator, the age of majority is also 18. §§ 68-807,
68-820(2).
CONCLUSION
In Oregon, the age of majority for UTMA property ranges from 18 to 25, depending on
the method by which the property transferred to the custodian and the intent of the
transferor.
In Alaska, the age of majority for UTMA property ranges from 18 to 25, depending on
the method by which the property transferred to the custodian, the nature of the property,
and the intent of the transferor.
In Idaho, the age of majority ranges between 18 and 21, depending on the property’s
transfer method.
The current POMS SI SEA 01120.205 does not accurately reflect the age of majority
in the states of Oregon, Alaska, and Idaho for UTMA property. We recommend updating
the POMS.