Understanding the Nevada Uniform Transfers to Minors Act

Understanding the Nevada Uniform Transfers to Minors Act www.wealth-counselors.com 1

UNDERSTANDING THE NEVADA UNIFORM

TRANSFERS TO MINORS ACT

“Pursuant to the Uniform Transfers to Minors Act, the liability

of custodians has been limited, as the type of property

which can be transferred has been expanded.”

BRADLEY B ANDERSON RENO NEVADA ESTATE PLANNING ATTORNEY

http://www.wealth-counselors.com/services/estate-planning-services/


Transferring your property, through a gift or by trust, is a common transaction.

However, transfers of property to minors are often more complicated and

requires more thought in order to be accomplished appropriately. Children are

considered to be too inexperienced to be legally competent to manage their own

assets. Therefore, third parties are unwilling to deal with minors, even if they

are competent in fact.

Nevertheless, there are a number of reasons why you may want to make a

transfer to a minor, as part of your estate planning. For that reason, legislation

was passed to assist in the transfer or property to minors in order to make the

rules regarding these transactions more uniform.


THE PREDECESSOR OF THE UNIFORM TRANSFERS TO

MINORS ACT

The first piece of federal legislation addressing this issue was passed in 1956 and

was known as the Uniform Gifts to Minors Act. The initial statute was based on

an earlier law sponsored by the New York Stock Exchange and the Association of

Stock Exchange Firms. Eventually, all of the states adopted this legislation or one

of its amended forms.


THE NEED FOR UNIFORMITY IN LAWS REGARDING

TRANSFERS TO MINORS

Some states also added other amendments that defeated the uniformity of the

law. In response, the statute we now know as the Uniform Transfers to Minors

Act was passed in 1983. The new law incorporates the provisions of the earlier

Gifts to Minors Act, but also expanded many provisions, making the Uniform

Transfers to Minors Act more than just an amendment of the earlier law. In fact,

the Uniform Transfers to Minors Act superseded the Gifts to Minors Acts.


HOW IS THE NEW UNIFORM TRANSFERS TO MINORS ACT

DIFFERENT?

There are four primary differences between the current Uniform Transfers to

Minors Act and the earlier Gifts to

Minors Act. Despite these differences,

the new Act serves the same purposes

as the earlier legislation. The

differences can be categorized as

follows: the type of property allowed,

the methods of making transfers,

resolution of conflict of laws issues, and

the liability of the custodian.

WHAT TYPE OF PROPERTY CAN

BE TRANSFERRED?

Under the Uniform Transfers to Minors

Act, any type of property can be

transferred to a minor regardless of

whether it is real property, personal property, tangible or intangible. The earlier

law limited gifts to securities only. Although the 1965 and 1966 amendments to

the Gifts to Minors Act expanded the type of property allowed, the Uniform

Transfers to Minors Act eliminated all restrictions.


HOW CAN PROPERTY BE TRANSFERRED TO A MINOR?

The method allowed for transferring property to minors under the earlier Gifts to

Minors Act was limited to

present gifts from adults only.

Now, the Uniform Transfers to

Minors Act allows future

transfers, as well as transfers

by powers of appointment, by

personal representative or

trustee, and other methods.

Anyone who is obligated to a

minor for property held, or for a

liquidated debt, can make a

transfer under the new law.

WHAT IS THE BASIS FOR

JURISDICTIONOVER

TRANSFERSTO MINORS?

The Uniform Transfers to

Minors Act provides jurisdiction under the act and choice of law rules. This

means that the Uniform Transfers to Minors Act will apply to a transfer made in

any state that has enacted the statute, as well as any other state that has either

adopted the new law, a version of the Gifts to Minors Act, or anything

substantially similar.


WHAT IS THE PRIMARY GOAL OF THE UNIFORM TRANSFERS

TO MINORS ACT?

Instead of a trust, guardianship or conservatorship, the Uniform Transfers to

Minors Act contemplates a custodianship of the property that would otherwise

transfer directly to the minor. The custodian would be either an adult or an

appropriate institution, which would serve in that capacity until the minor

reaches the age specified in the statute. Age of maturity ranges from 18 to 25

depending on the state’s version of the statute. The custodial relationship is

created by executing a simple document.


WHAT IS THE EXTENT OF LIABILITY OF THE CUSTODIAN?

Pursuant to the Uniform Transfers to Minors Act, the liability of custodians has

been limited as the type of property which can be transferred has been

expanded.The custodian has specific statutory authority to deal with the property

on behalf of the minor. The custodian will not be held personally liable for

contractual obligations where it is clear that the custodian signed only in the

capacity of “custodian”. Nor will the custodian be heldpersonally liable on tort

claims arising from the ownership or control of custodialproperty unless the

custodian is found to be personally at fault.

If you have questions regarding the Uniform Transfers to Minors Act, or any

other estate planning needs, please contact Anderson, Dorn & Rader, Ltd., either

online or by calling us at (775) 823-9455.

http://www.wealth-counselors.com/contact-us/


About the Author

BradleyB Anderson

Prior to founding his own firm in 1995, Mr. Anderson served as a

senior counsel for two major financial institutions and witnessed

the often devastating effects of ineffective estate planning with

many customers of those institutions. When he eventually decided

to venture out on his own, this experience led him to focus

exclusively on estate planning, providing his clients with a full

range of basic and advanced planning options.

Mr. Anderson began his professional life as a teacher of mentally-challenged, visually impaired

students. After four years as a special education teacher, Mr. Anderson returned to school to

obtain his law degree and begin a second career. Upon finishing law school, he went to work

for a civil litigation firm, spending five years handling litigation, probate and wills work. He

then moved on to Wells Fargo Credit Corporation where he served as senior counsel. In 1990

he accepted a position with the First Interstate Bank Legal Division, where he had

responsibility for several divisions, including the Trust Department. In 1995, he began his own

practice as Bradley B Anderson, Attorney at Law. The firm has continued to grow into the

premier estate planning law firm we see today.

Anderson, Dorn& Rader, Ltd. Legacy and Wealth Planning Attorneys 500 Damonte Ranch Parkway Suite 860

Reno, NV 89521 Phone: (775) 823-9455 Fax: (775) 823-9456



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Understanding the Nevada Uniform Transfers to Minors Act

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