You asked us to determine whether minors are allowed to hold title to real or personal
property in the six states in our region, and, if so, whether there are any restrictions
on the age of the minor or the types of property that a minor could hold. You also
asked us to determine whether there are any specific requirements on how the property
should be titled to reflect the minor as the titleholder. We have concluded that in
Illinois, Indiana, Michigan, and Wisconsin, minors can hold title to real or personal
property and that minors can be shown as the titleholder of such property. In Ohio,
a minor can hold title to real or personal property, but a minor can purchase and
own an automobile only if the minor's parent or guardian expressly authorizes that
purchase. In Minnesota, a minor can hold title to real or personal property, but a
state statute prohibits a minor from owning an automobile, except in certain circumstances
not likely to occur in the situation involving back SSI payments to a disabled child.
None of the states in our region impose any particular restrictions concerning the
age of the minor.
In a prior memorandum on this topic, ((See "SSI—Property of Minors," Memorandum to
Gonzalez, Acting ARC-POS from HHS-OGC-V (Patsavos) (June 17, 1994) (hereafter 1994
Mem.)), we cited general principles of common law to conclude that, in our six states,
a minor is capable of acquiring or taking title to property, whether real estate or
personal property. See 42 Am. Jur.2d Infants §§ 8, 61,103 (1969 & 1998 supp.). That
general proposition remains valid.
Minnesota
In Minnesota, minors may own real property. See Terrell v. Kopp, 210 N.W. 632 (Minn. 1926); Goodnow v. Empire Lumber Co., 18 N.W. 283 (Minn. 1884). They may purchase personal property. See Nichols & Shepard Co. v. Snyder, 81 N.W. 516 (Minn. 1900).
Some court cases have suggested that a minor may purchase an automobile. See Steigerwalt v. Woodhead Co., 244 N.W. 412 (Minn. 1932). But under current law, Minn. Stat. Ann. § 168.101 (West
Supp. 1998), a person under the age of 18 can own a passenger automobile or truck
only if he or she meets one of the following five conditions: (1) the person has completed
an approved driver training course and has attained age 17; (2) the person is a high
school graduate and has attained age 17; (3) the person is an employed, emancipated
minor who holds a Minnesota drivers license; (4) the person, before January 1, 1964,
owns a passenger automobile or truck which is registered in the person's name; (5)
the person became the owner of the passenger automobile or truck while a resident
of a foreign state, district, territory, or country, and the automobile or truck is
registered in the person's name in the other location.
Transfers Under The Uniform Transfers To Minors Act
In our prior memorandum, we observed that minors can take title to property as provided
in the Uniform Transfers to Minors Act ("UTMA") and the Uniform Gifts to Minors Act
("UGMA"). Except for Michigan, all our states have adopted a version of the UTMA.1/
Michigan has a version of the UGMA, Mich. Comp. Laws Ann. § 554.451 et seq.(West 1988).
All of these statutes allow a minor to receive certain forms of property, and have
it held by a custodian for the use and benefit of the minor.
In our prior memorandum, we suggested that the UTMA allowed the transfer of property
in which the minor already had an interest. See 1994 Mem. at 4 n.2. On further consideration,
however, we believe that neither the UTMA nor the UGMA allows transfers from the minor
to himself or herself. The UTMA allows transfers by gift. See 760 III. Comp. Stat.
Ann. § 20/5; Ind. Code Ann. § 30-2-8.5-19; Minn. Stat. Ann. § 527.24; Ohio Rev. Code
Ann. § 1339.32; Wis. Stat. Ann. § 880.625. There may be transfers authorized by will
or trust. 760 III. Comp. Stat. Ann. 20/6; Ind. Code Ann. § 30-2-78.5-20; Minn. Stat.
Ann. § 527.25; Ohio Rev. Code Ann. § 1339.32; Wis. Stat. Ann. § 880.63. There may
be transfers from other fiduciaries. 760 Ill. Comp. Stat. Ann. 20/7; Ind. Code Ann.
§ 30-2-8.5-21; Minn. Stat. Ann. § 527.26; Ohio Rev. Code Ann. § 1339.32; Wis. Stat.
Ann. § 880.635.2/ And there may be transfers from other obligors. 760 Ill. Comp. Stat.
Ann. 20/8; Ind. Code Ann. § 30-2-8.5-22; Minn. Stat. Ann. § 527.27; Ohio Rev. Code
Ann. § 1339.32; Wis. Stat. Ann. § 880.64. We do not believe that a. person may make
a gift or transfer to himself or herself. In addition, a representative payee would
not appear to be making a gift or other covered transfer when he or she makes a purchase
with a minor's conserved SSI payments.3/ Therefore, we believe that the LITMA would
not apply to purchases made with a minor's conserved funds.
CONCLUSION
For these reasons, we believe that a minor may own and acquire property in the six
states in our region.
1/ See Illinois Uniform Transfers to Minors Act, 760 III. Comp. Stat. Ann. 20/1 et
seq. (West 1998); Indiana Uniform Transfers to Minors Act, Ind. Code Ann. § 30-2-8.5-1
et seq. (West 1994); Minnesota Uniform Transfers to Minors Act, Minn. Stat. Ann. §
527.21 et seq.; Ohio Transfers to Minors Act, Ohio Rev. Code Ann. § 1339.31 et seq.;
Wisconsin Uniform Transfers to Minors Act, Wis. Stat. Ann. § 880.61 et seq. (West
1991).
2/ The comments to the UTMA establish that this provision can be used to cover a transfer
of the minor's own property by a legal representative. See Uniform Transfers to Minors
Act (ULA) § 6 cmt. (West, Westlaw through Aug. 1997). But a representative payee who
holds an SSI recipient's funds is not the legal representative of that recipient.
Therefore, this provision does not appear to apply to the situation faced by representative
payees.
3/ The Ohio version of the UTMA makes it clear that any gift or transfer of property
to a minor must come from a person eighteen years of age or older. Ohio 1339.32.