what is the uniform gifts to minors act ugma 
the uniform gifts to minors act ugma allows individuals to give or transfer assets to underage beneficiaries the act which was developed in 1956 and revised in 1966 is commonly used to transfer assets from parents to their children 1 the amount is free of gift tax up to a certain amount the assets are usually placed in ugma accounts on behalf of minors eliminating the need for an attorney to establish a special trust fund ugma funds are also subject to special tax treatment investopedia mira norian