Common use of Transfers to Minors Clause in Contracts

Transfers to Minors. You may make a gift of money to a minor under state law by opening an account in the name of the minor pursuant to the Uniform Transfers to Minors Act (UTMA). If your account is opened under UTMA, the funds in your account belong to the minor you have named. You, as custodian, or the custodian you have named (or any successor custodian), must transfer any funds remaining in the UTMA account to the minor or the minor’s estate, as applicable, when the minor attains the age of 21 in most cases or at such other time or under the circumstances prescribed by Applicable Law. The law of the state where your account is maintained determines when the minor reaches the age of majority. Before that time, you, as custodian, or the custodian you have named (or any successor custodian), have the right, subject to Applicable Law, to withdraw all the funds from the UTMA account at any time for the use or benefit of the minor. We have no duty to monitor or ensure that the acts of any custodian are for the use or benefit of the minor or are otherwise permissible under Applicable Law, and we will not be liable if any custodian exceeds his or her powers prescribed under UTMA or does not comply with Applicable Law.