You have asked us: (1) whether the age at which a recipient of a gift under the Uniform
Gifts to Minors Act has the right to liquidate the gift has changed since April 1992,
and (2) whether the law of the State in which the child currently resides is controlling
with respect to the age at which custodial property must be transferred to the minor.
We will answer the second question first, as it is the less complicated of the two.
Our Opinion of October 12, 1999, “Age
of Majority under the Uniform Transfers to Minors Act” is correct and applicable to all of the States in Region VIII. The law of the State
in which the child currently resides is not controlling under the current laws of
any State in Region VIII. All of the States have adopted a provision of the Uniform
Transfers to Minors Act (UTMA) which provides:
-
This chapter applies to a transfer that refers to this chapter . . . by which the
transfer is made if at the time of the transfer, the transferor, the minor, or the
custodian is a resident of this state or the custodial property is located in this
state. The custodianship so created remains
subject to this chapter despite a subsequent change in residence
of a transferor, the minor, or the custodian or the removal of custodial
property from this state.
See CRSA § 11-50-103, MCA § 72-26-503, NDCC § 47-24.1-02, SDCL § 55-10A-2, UCA § 75-5a-103,
WS § 34-13-115. (Emphasis added.) Thus, the law of the state in which the transfer
was made now expressly states which law applies.
As to your first question, we have reviewed the provisions and the information set
forth in POMS Section “SI R01120.205
DEN B UNIFORM GIFTS TO MINORS ACT,” which you have included with your request and have asked us to update. The Section
accurately summarizes the law of South Dakota and Montana. The provisions pertaining
to the laws of Colorado, North Dakota, Utah, and Wyoming must be changed.
The UTMA was adopted (and the Uniform Gifts to Minors Act (UGMA) repealed) by Colorado
on July 1, 1984; Montana on October 1, 1985; North Dakota on July 1, 1985; South Dakota
on July 1, 1986; Utah on July 1, 1990; and Wyoming on May 22, 1987. Custodianships
created in those States prior to those dates will continue to terminate at the age
prescribed under their respective versions of the UGMA.
The UTMA divides transfers to minors into four categories: (1) transfer by gift or
exercise of power of appointment, (2) transfer authorized by will or trust, (3) other
transfer by fiduciary, and (4) transfer by obligor. In Colorado and South Dakota,
the age at which custodial property must be transferred to the minor is the same for
all four types of transfers. In Montana, North Dakota, Utah, and Wyoming, property
created by transfers described in (1) and (2) above must be transferred to the minor
at age 21, and property created by transfers described in (3) and (4) above must be
transferred to the minor at age 18. The applicable UTMA provisions of each State are
summarized below.
Colorado
Regardless of the type of transfer by which the property was created, the custodian
must transfer property to the minor or the minor's estate upon the earlier of (1)
the minor attaining the age of 21, or (2) the minor's death. CRSA §§ 11-59-105, 106,
107, 108, 121.
Montana
The custodian shall transfer custodial property to the minor or the minor's estate
upon the earlier of: (1) the minor's attainment of the age of 21, with respect to
custodial property transferred by gift, exercise of power of appointment, will, or
trust; (2) the minor's attainment of the age of 18 with respect to other transfers
by fiduciaries or transfers by obligors; or (3) the minor's death. MCA §§ 72-26-604,
605, 606, 607, 803.
North Dakota
The custodian shall transfer custodial property to the minor or the minor's estate
upon the earlier of: (1) the minor's attainment of the age of 21, with respect to
custodial property transferred by gift, exercise of power of appointment, will, or
trust; (2) the minor's attainment of the age of 18 with respect to other transfers
by fiduciaries or transfers by obligors; or (3) the minor's death. NDCC §§ 47-24.1-04,
05, 06, 07, 20.
South Dakota
Regardless of the type of transfer by which the property was created, the custodian
shall transfer custodial property to the minor or the minor's estate upon the earlier
of: (1) the minor's attainment of the age of 18, or (2) the minor's death. SDCL §§
55-10A-4, 5, 6, 7, 22.
Utah
The custodian shall transfer custodial property to the minor or the minor's estate
upon the earlier of: (1) the minor's attainment of the age of 21, with respect to
custodial property transferred by gift, exercise of power of appointment, will, or
trust; (2) the minor's attainment of the age of 18 with respect to other transfers
by fiduciaries or transfers by obligors; or (3) the minor's death. UCA 1953 §§ 75-5a-105,
106, 107, 108, 121.
Wyoming
The custodian shall transfer custodial property to the minor or the minor's estate
upon the earlier of: (1) the minor's attainment of the age of 21, with respect to
custodial property transferred by gift, exercise of power of appointment, will, or
trust; (2) the minor's attainment of the age of 18 with respect to other transfers
by fiduciaries or transfers by obligors; or (3) the minor's death. WS 1977 §§ 34-13-117,
118, 119, 120, 133.
Deana R. E~
Regional Chief Counsel, Region VIII
By:___________________________
Thomas S. I~
Assistant Regional Counsel