Age of Majority and Trust Termination

The age at which the minor takes control of the custodial account depends on the minor’s state of residence and whether the custodial is a Uniform Transfers to Minors Act (UTMA) or a Uniform Gifts to Minors Act (UGMA) account.

Each state may have additional provisions affecting the age of termination. Also, some states permit the donor or transferor to specify a different age of termination at the time the gift or transfer is made. Note that the age of termination is not necessarily the same as the age of majority in the state. The age of majority is the age at which an individual can sign contracts (i.e., no more “defense of infancy”). The age of termination is not the same as the age of majority. In most cases the age of termination comes later. (The age of majority for signing contracts is 18 in most states, except Alabama and Nebraska, where it is 19, and Indiana, Mississippi, New York and Puerto Rico, where it is 21.

For child support purposes, the age of majority is 18 in most states, 19 in Alabama, Colorado, Maryland and Nebraska, and 21 in D.C., Indiana, Mississippi, and New York, with exceptions for a later age of majority if the child is still in secondary school.)

The age of termination for UGMA and UTMA accounts is listed in the following table. Note that some states permit the transfer to occur at a later date if this is specified in the titling of the account. For example, California allows the transfer to be delayed until as late as age 25 if the trust is titled “as custodian for (Name of Minor) until age (Age for Delivery of Property to Minor)”. If the trust is not titled in this manner, the age of trust termination remains age 18.

Age of Majority by State

State Specific UGMA / UTMA Provisions

Age of termination must be specified and indicated during registration when the custodian account is established. Additional provisions currently designated in some states as noted below:

• Alaska permits specifying an age between 21 and 25
• Arkansas permits specifying an age between 18 and 21
• California may extend to age 21 if the transfer is by a gift; to age 25 if the transfer is pursuant to a will, trust or power of appointment
• District of Columbia permit designating the age of 21
• Florida permits extending custodianship to age of 25 at the time of creation of the UTMA account (age 25 UTMAs), but the custodian is required to provide written notice
• Louisiana terminates at age 16 if the minor is fiducially emancipated
• Maine permits specifying an age between 18 and 21
• Maryland terminates at age 18 if created by an obligor
• Michigan permits specifying an age between 18 and 21
• Missouri may terminate at age 18 if the custodial property was from a person other than a donor and the minor asks for the property
• Nevada permits extending custodianship to the age of 25
• New Jersey permits specifying an age between 18 and 21
• North Carolina permits specifying an age between 18 and 21
• Ohio permits extending custodianship to the age of 25
• Oklahoma permits specifying an age between 18 and 21
• Oregon permits specifying an age between 21 and 25
• Pennsylvania permits specifying an age between 21 and 25
• Tennessee permits specifying an age between 21 and 25
• Virginia as of July 1, 2019 allow extending custodianship to the age of 25
• Washington permits extending custodianship to the age of 25
• Wyoming permits extending the custodianship up to the age of 30, the custodian must inform the minor within 6 months upon reaching age of 21

UGMA exceptions:

• Delaware permits specifying an age between 18 and 21
• New York permits specifying age 21
• South Carolina permits the transfer at age 18

Finaid has more information on UGMA & UTMA Custodial Accounts and FAQ’s about Financial Aid to assist students.

Emancipation Before Age of Majority

The Higher Education Opportunity Act of 2008 amended section 480(d)(1)(C) of the Higher Education Act of 1965 to treat as independent any student who becomes an emancipated minor before reaching the age of majority. The specific legislative language is: is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual’s State of legal residence. The term “emancipation” is often used when a child reaches the age of majority or child support obligations end, but this is not the same as an “emancipated minor”. An emancipated minor becomes an adult able to sign contracts before reaching the age of majority through a court order. A court order terminating child support upon the child’s reaching the age of majority does not qualify, not even if it uses the word emancipation.