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Is Illinois an UTMA state?

Is Illinois an UTMA state?

The Illinois UTMA prohibits transfers to a custodian in only a few cases. These include when the governing instrument expressly prohibits transfer to a custodian or when such a transfer is inconsistent with the provisions of the will, trust, or governing instrument.

At what age do UTMA accounts transfer in Illinois?

Any money or property transferred under the UTMA is under the control of a custodian until the minor child reaches age 21. The custodian has discretion to give to the minor child, or spend for the minor child, the amount of the gift the custodian determines equitable.

What are the rules for UTMA accounts?

Depending on the state a UTMA account is handed over to a child when they reach either age 18 or age 21. In some jurisdictions, at age 18 a UTMA account can only be handed over with the custodian’s permission, and at 21 is transferred automatically.

What states allow UTMA accounts?

Age of Majority and Trust Termination

State UGMA UTMA
Alaska 18 21
Arizona 18 21
Arkansas 21 21
California 18 18

Does Illinois use UTMA or UGMA?

While the age of majority in Illinois is 18, under UTMA the custodial account remains in existence until the child attains the age of 21. Upon reaching 21 years of age, the child has free access and control of the money.

How are UTMA accounts taxed 2021?

Because money placed in an UGMA/UTMA account is owned by the child, earnings are generally taxed at the child’s—usually lower—tax rate, rather than the parent’s rate. For some families, this savings can be significant. Up to $1,050 in earnings tax-free. The next $1,050 is taxable at the child’s tax rate.

What is the age for a custodial account in Illinois?

While the age of majority in Illinois is 18, under UTMA the custodial account remains in existence until the child attains the age of 21. Upon reaching 21 years of age, the child has free access and control of the money. Besides cash, other types of property can be put into an UTMA account.

Who pays taxes on a UTMA account?

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