What Happens at the Age of Majority?

In 1998, a Nebraska father opened a custodial account for his 15-year-old son, Marcus Soori-Arachi. He put in about $10,000, used the money to buy an annuity, and named himself custodian. Under Nebraska law, the account should have been handed over to Marcus when he came of age. The day came and went, and nothing changed. Years later, his father was still listed as custodian.

In 2017, Marcus and his wife filed for bankruptcy, and the bankruptcy trustee went looking for assets. At the trustee’s request, the insurance company re-titled the annuity, by then worth $105,000, in Marcus’s own name. Marcus objected that it still belonged to his custodial account. In March 2019, a bankruptcy judge in Rhode Island disagreed: Marcus had automatically become the owner when the custodianship ended, years earlier, and the insurer had simply updated its records. The Arizona law firm Fleming & Curti summarized the ruling, In re Soori-Arachi.

That’s the heart of what happens at the age of majority. A custodial account’s handoff isn’t a decision or a ceremony. It happens by law, on the birthday your state sets, whether or not anyone signs a form, and from then on the money is your child’s to control, and their creditors’ to reach. This guide covers the handoff age in every state, what your child gains that day, what you can and can’t do beforehand, and how to hand over an account cleanly. It’s part of our section on legal protections, which starts with The Ultimate Guide to Legalities for Custodial Accounts.

The handoff happens by law

“Age of majority” usually means the age when someone becomes a legal adult who can sign contracts: 18 in most states, 19 in Alabama and Nebraska, and 21 in Mississippi, according to FinAid, which tracks both numbers state by state. A custodial account follows a different number, its age of termination, set by your state’s version of the Uniform Transfers to Minors Act (UTMA). The two aren’t the same, and in most cases the account’s age comes later, FinAid notes.

The model act ties that age to where the money came from. Gifts, and transfers a will or trust authorizes, stay in the account until 21. Money that reaches a child some other way, such as a payment from someone who owed the child money, hands over at the state’s general age of adulthood. Kansas’s version, for example, hands over gifts at 21 and money from such an obligor at 18, under K.S.A. 38-1721. Many states changed the gift age, as the table below shows.

When that birthday arrives, the custodian must transfer the property to your child. State laws use the same short command: the custodian “shall transfer in an appropriate manner” the custodial property to the minor. The custodianship also ends if the child dies first, in which case the property goes to the child’s estate. If the custodian dies before the handoff, a successor steps in, which is why Naming Successor Custodians matters.

Firms build their processes around that date. Fidelity restricts a custodial account unless its assets move to an account in the beneficiary’s name within 60 days of the beneficiary reaching the age of adulthood in their state of residence. Banks are being warned about the same date. Because a bank may be liable if a custodian acts on an account after the beneficiary’s 21st birthday and causes a loss, lawyers advising Texas banks recommend flagging these accounts a few weeks ahead and reminding both the custodian and the beneficiary of the deadline, according to a recent article in The National Law Review.

Which state’s law applies

The handoff age comes from the state law named when the account was created, not from where your family lives today. Each state’s act applies to accounts that refer to it and keeps applying “despite a subsequent change in residence” of the giver, the child, or the custodian, as Texas’s version puts it. An account’s registration shows whether it’s a UGMA or a UTMA account and its age of majority, Capital Group notes. If you’ve moved since opening the account, check the registration and ask your firm which age it will apply, since Fidelity’s instructions refer to the beneficiary’s state of residence.

Older UGMA accounts

Accounts opened under the older Uniform Gifts to Minors Act (UGMA) can follow a different age. Every state repealed its UGMA when it enacted the UTMA, and UGMA accounts that already existed kept the UGMA’s age of termination, FinAid explains. In New York, for example, accounts created under the UGMA through December 31, 1996 end at 18, while UTMA accounts end at 21 unless the person who opened the account chose 18, according to a New York probate firm. South Carolina, the only state still using the UGMA in 2019 according to Fleming & Curti, switched next: its UTMA took effect on April 4, 2022, defining an adult as someone 21 or older, under Act No. 128, while its older UGMA accounts can hand over at 18, according to FinAid. UTMA vs. UGMA: What’s the Difference? compares the two laws.

Every state’s handoff age

Here’s the age at which a gift hands over in every state and the District of Columbia, along with any later age the law allows. The table starts from FinAid’s state-by-state summary, updated in March 2026, and checks it against Saving for College’s table and the state laws cited in this guide. Where those sources disagreed, the table follows the statute.

• Default age for a gift
• Latest age state law allows

Counts include the District of Columbia. California allows 25 only through a will, a trust, or a power of appointment, and Wyoming allows 30 only through a will, trust, or nomination, or a custodian’s extension. Based on the state table below.

See the numbers

States, counting D.C., at each handoff age

Age	Default for a gift	Latest the law allows
Age 18	9	2
Age 21	41	37
Age 22	1	1
Age 25	0	10
Age 30	0	1
All	51	51

Twenty-one is the norm. Eight states and D.C. hand over a gift at 18, Louisiana waits until 22, and in 11 states the law allows an age past 21 in at least some cases, usually 25. The full list:

Ages are for gifts and for transfers a will or trust authorizes. Money that reaches an account another way, such as a payment from someone who owed the child money, can hand over earlier in some states, and several states also let a giver choose an earlier age, such as 18. FinAid’s table differs from the statutes for two states: Maryland’s law hands over gifts at 21, and Virginia’s at 18. Louisiana’s law now sets 22, where Saving for College’s 2020 table shows 18. Laws change, so confirm the age with your account’s provider.

Four of the later-age states build in a safeguard for the young adult. In Florida, a giver can set up an account that runs to 25, but the young adult keeps an absolute right to take everything at 21. If the giver arranged for it when opening the account, that right can lapse after a fixed period, but only if the custodian delivers written notice within 30 days before or after the 21st birthday, and the period can’t end until at least 30 days after the later of the birthday or the notice. Virginia treats a gift set to end at 25 similarly: the custodian must hand over the money at 21 if the young adult asks in writing during a window that opens 30 days before the 21st birthday and closes 30 days after the later of the birthday or the custodian’s written notice of the right. In Wyoming, a 2017 law allows ages up to 30 when a will, trust, or nomination provides for it, and lets a custodian extend the term past 21, after written notice, if the young adult doesn’t seek to compel distribution. Alaska works much the same way: a custodian can extend an account up to 25, but the young adult has a right to compel distribution, and the later age holds only if they don’t use it within the period the law sets, according to the Social Security Administration’s summary of the state’s law.

A later age can carry a tax cost for the giver. Washington lets a giver extend an account to 25 by checking a box on the state’s transfer form, but the form itself warns that the election may cost the giver the federal gift tax annual exclusion and advises talking with an attorney or tax advisor first, under RCW 11.114.090. The Impact of the 2026 Gift Tax Exclusion explains what that exclusion covers.

California runs the other way. A gift there hands over at 18 unless the transfer names a later age. A lifetime gift can name an age up to 21, and a transfer through a will, a trust, or a power of appointment an age up to 25, under Probate Code section 3920.5.

Why you can’t take it back

Every dollar in a custodial account is an irrevocable gift that already belongs to your child. The custodian manages the money, but the property is legally your child’s, which is why the handoff isn’t anyone’s decision to make. The Ultimate Guide to Legalities for Custodial Accounts explains the rule and what custodians can spend the money on along the way.

Givers who forget that can cost a child the whole gift. In 1987, a California grandfather, Allan Levine, opened custodial accounts for his two young grandchildren and named himself custodian. In December 1995, he withdrew almost $125,000 from the two accounts and moved it into his own living trust, which would pass to his wife at his death. He died in 1999, when his granddaughter was 17 and his grandson had turned 18 four months earlier. Eighteen months later, the grandchildren sued his widow. The trial court dismissed the case under California’s one-year deadline for claims against someone who has died, and in October 2002 the Court of Appeal let the dismissal stand, rejecting the granddaughter’s argument that she had sued within a year of reaching adulthood. Had the grandchildren sued in time, they would probably have won, because the money was never his to take back, Fleming & Curti concluded in its summary of Levine v. Levine.

Until the handoff, a custodian can spend the money for your child’s benefit, but several moves are off the table:

• Taking it back. A gift can’t be reclaimed, even by the person who gave it, as the Levine case shows.
• Switching children. The money belongs to one child. Even if it’s moved into a custodial 529, the custodian can’t change that account’s beneficiary, FinAid explains.
• Holding on. A custodian can’t keep the money past the handoff age because a young adult doesn’t seem ready. If a young adult truly can’t manage money because of a disability, the remedy is a conservatorship, not a longer custodianship, Fleming & Curti notes.
• Bargaining it away. The age is fixed by law, not by agreement. In a 2024 Colorado divorce case, In re Marriage of Nevedrova, the Court of Appeals noted that a custodial account there hands over at 21, even though a father had asked the court to hold the money only until 18, as Protecting Assets in the Event of Divorce describes.

What your child gains at the handoff

Ownership doesn’t change at the handoff, because the money was always your child’s. What changes is control, and with it, responsibility.

Full control

After the handoff, the money is simply your child’s. They can keep it invested, sell, or spend it on anything, and nothing requires them to use it for college. Once a beneficiary reaches the state’s age, they’re entitled to the account’s assets without restriction, and a custodian who fails to turn them over could be breaching their fiduciary duty, Kitces.com explains.

Your child can often start the transfer, too. At Capital Group, either the custodian or the beneficiary can request it, and a beneficiary who asks sends a copy of a birth certificate or a government ID as proof of age, according to its transfer instructions. At Fidelity, the custodian starts the change online, the beneficiary e-signs, and the assets arrive in the beneficiary’s account within five to seven business days.

The right to the records

A custodian must keep records of every transaction, and under the model act a child can see them from age 14. Courts have held custodians to account after the handoff, too, though the path can be tricky. In 1983, Allyne Peter set up a custodial account of more than $83,000 for her grandson, naming her son as custodian. In 2007, years after turning 21, the grandson sued his father to make him account for the money. His father argued that the law required such suits to be brought in a lower court, and only by a minor, which would have left his son with no court at all. In 2010, the Kentucky Court of Appeals let the son’s case go forward in Peter v. Schultz-Gibson.

A New York grandson had less luck. Months after turning 21, he asked the Surrogate’s Court to order his grandmother to account for his custodial money, and in 2009 the court dismissed the case, because the statute’s route into that court is written for minors. Both cases are summarized by Fleming & Curti, which concluded that one way or another, a young adult can compel an accounting and the release of the money.

The lesson for families: ask for a full accounting before the handoff, while the simple route is clearly open, and keep copies. After the handoff, your child can still hold a custodian accountable, but may need a different court and has to act within your state’s deadlines, as the Levine grandchildren learned.

Can you delay the handoff?

For an account that already exists, generally not. Where a later age is allowed, it has to be specified when the account is registered, FinAid notes, and in California a transfer that names no age hands over at 18. Here’s what you can do:

• Choose the latest age when you open an account. If your state allows a later age, it has to be in the registration from the start. Weigh Washington’s gift tax warning, and remember that in Alaska, Florida, and Virginia a young adult can still claim the money at 21.
• Spend for your child’s benefit before the handoff. Custodial money can pay for things that genuinely benefit your child, such as education, and every withdrawal should be documented. Liquidating Safely covers how to draw an account down.
• Move it into a custodial 529. The money gains a 529’s tax treatment for education, but this doesn’t delay the handoff: ownership of a custodial 529 still passes to your child at the custodial account’s age, Kitces.com notes.
• Use a qualified minor’s trust, where allowed. Maryland and New Hampshire let a custodian move custodial property into a qualified minor’s trust without a court order, ending the custodianship for that money, under a 2005 Maryland law and New Hampshire’s statute. Ask an estate planning attorney whether your state allows it and what the trust has to say.

For money you haven’t given yet, the choice is easier. If you want control past 18 or 21, use an account you own. A 529 plan you own doesn’t change hands when your child grows up, Kitces.com notes, and a trust can follow whatever schedule you set. Understanding Trust Funds for the Middle Class and Custodial Brokerage Accounts vs. Parent-Owned Taxable Accounts weigh the tradeoffs. A 2026 update to the model law would let new gift accounts run until 25 and allow moves into 529 plans, ABLE accounts, and special needs trusts, but only in states that adopt it, according to the American Bar Association’s Probate & Property magazine.

Taxes and financial aid after the handoff

The handoff itself isn’t a sale. The investments can move as they are into an account in your child’s name, and the account’s withdrawals and cost basis have been reported under your child’s Social Security number all along, Capital Group notes. Taxes come from what the investments do: the income they earn, and gains when they’re sold, no matter who is in charge.

Turning 18 or 21 doesn’t end the kiddie tax, either. It can apply when a child’s investment income tops $2,700 and, at the end of the year, the child is under 18, is 18 and didn’t have earned income of more than half of their support, or is a full-time student from 19 through 23 whose earned income didn’t cover more than half of their support, according to the IRS’s Topic No. 553. A college junior who sells shares after the handoff could still owe part of the tax at the parents’ rate. Navigating the 2026 Kiddie Tax Thresholds explains how it works.

Financial aid doesn’t change at the handoff. A custodial account is reported on the FAFSA as your child’s own asset, assessed at up to 20%, according to Chase, and money your child owns outright after the handoff is still theirs. How 529s and UTMAs Impact the FAFSA covers the formulas.

529s, Roth IRAs, and Trump Accounts

Not every account for a child changes hands on the same schedule:

• A 529 plan you own doesn’t change hands at all. Your child reaching adulthood doesn’t require any change in the account’s ownership or control, Kitces.com explains. The Complete Guide to 529 College Savings Plans covers how ownership works.
• A custodial 529, funded with custodial money, passes to your child at the custodial account’s handoff age and keeps its 529 rules.
• A custodial Roth IRA is managed by a custodian until a required age, typically 18 or 21 depending on the state, Fidelity explains. The Custodial Roth IRA covers the details.
• A Trump Account is owned by the child, with a parent or guardian acting for them until 18, and withdrawals generally aren’t allowed before then, Fidelity explains. The 530A Trump Account Explained has the rules.
• A teen brokerage account follows its own rules, which Teen Brokerage Accounts vs. Custodial Accounts compares.

A handoff checklist for custodians

If you’re the custodian, a little preparation makes the handoff smooth and keeps you clearly within your duties:

• Now: find the account’s registration and note which state’s act it names, whether it’s a UGMA or a UTMA account, and any age it lists. Put the date on your calendar.
• From age 14: share statements with your child and explain what the account is for. The “Wealth Transfer” Conversation offers a script.
• A year before: assemble a full accounting: deposits, withdrawals, what each withdrawal paid for, and the purchase records your child will need for taxes when they sell.
• A few months before: have your child open an account in their own name at the same firm, so the investments can move without being sold.
• On the birthday: start the transfer, and stop trading or withdrawing. Your authority ends with the custodianship.
• Afterward: hand over the records and the latest tax forms, and keep copies for yourself.
• If the account is old or you’ve moved: confirm with the firm which age and which state’s law it will apply.

How GoodNest fits

GoodNest is built for the giving side of your child’s savings. Family and friends give from your child’s GoodNest page, often alongside a small keepsake like a book. GoodNest doesn’t hold or invest the money, and it isn’t a custodian or a 529 plan. Gifts go straight to you by Zelle, Venmo, or PayPal, and you move each gift into the account it’s meant for. That choice decides who will control the gift when your child grows up:

• A custodial account makes the gift your child’s property right away, and theirs to control at your state’s handoff age.
• A 529 plan you own keeps the gift under your control for as long as you own the account.
• A trust follows the schedule its terms set.

Knowing your state’s handoff age before you deposit means you can answer a grandparent who asks when the gift will be your child’s. Whichever account you choose, set it as the destination on your child’s page, and the page tells family where their gifts go. Building Your Village covers how to welcome gifts from family and friends.

The bottom line

A custodial account has a built-in end date. On the birthday your state sets, usually 21, the custodian’s job ends and the money becomes your child’s to control, whether or not the paperwork is ready. You can’t move that date for an account that already exists, but you can know it, prepare your child for it, hand over clean records, and choose where future gifts go with the handoff in mind. For the rules that govern custodial accounts from the first deposit to the last, return to The Ultimate Guide to Legalities for Custodial Accounts.

Frequently asked questions

At what age does a UTMA account transfer to the child?

It depends on your state and how the account was set up. A gift hands over at 21 in most states, at 18 in eight states and D.C., and at 22 in Louisiana. Eleven states allow an age past 21 in at least some cases, usually 25 and up to 30 in Wyoming, if it’s chosen when the gift is made. The account’s registration names the state whose law applies.

Can a parent keep control of a UTMA account after the child turns 18 or 21?

No. When the handoff age arrives, the custodian must transfer the account to your child, and the custodianship ends whether or not anyone signs a form. Firms restrict accounts that aren’t transferred on time, and a custodian who holds on can be sued. The only ways to keep control longer are set up in advance, such as a later age where your state allows it, or an account you own for future gifts.

Does my child have to spend UTMA money on college?

No. After the handoff, the money is your child’s to use for anything. Before it, the custodian can spend the money on things that benefit your child, which can include education, but can’t take it back.

Is transferring a UTMA account to my child taxable?

Moving the investments into an account in your child’s name doesn’t sell anything, and the account has been reported under your child’s Social Security number all along. Selling investments later can create taxable gains, and the kiddie tax can still apply to a full-time student through age 23 whose earned income doesn’t cover more than half of their support.

What happens to a custodial account if we move to another state?

Its handoff age doesn’t change. A custodial account stays subject to the law of the state named when it was created, even after a move. Some firms’ instructions refer to the age in the beneficiary’s state of residence, so ask yours which age it will apply.

Sources

• Social Security Administration, SI SEA01120.205, “The Legal Age of Majority for Uniform Transfer to Minors Act (UTMA)” (accessed October 2, 2026).
• Fleming & Curti, PLC, “UTMA Account Belongs to Adult Beneficiary” (March 31, 2019), summarizing In re Soori-Arachi, a ruling of the U.S. Bankruptcy Court in Rhode Island (March 26, 2019).
• FinAid, “Age of Majority and Trust Termination” (updated March 10, 2026).
• Kansas Legislature, K.S.A. 38-1721, Termination of custodianship (accessed October 2, 2026).
• Fidelity Investments, “Transfer your UGMA/UTMA to the beneficiary” (accessed October 2, 2026).
• “Don’t Let a Minor’s Account Become a Major Issue: Protecting Your Bank from UTMA Account Liability”, The National Law Review (accessed October 2, 2026).
• Texas Property Code § 141.003, Scope and jurisdiction, via Public.Law (accessed October 2, 2026).
• Capital Group, “UGMA and UTMA” (accessed October 2, 2026).
• “Closing a UTMA Custodian Account”, NYC Probate Lawyer (accessed October 2, 2026).
• South Carolina General Assembly, 2021-2022 Bill 3821, South Carolina Uniform Transfers to Minors Act (Act No. 128, effective April 4, 2022).
• Mark Kantrowitz, “Age of majority”, Saving for College (updated May 7, 2020).
• Maryland Code, Estates and Trusts § 13-320, Termination of custodianship (2005 edition), via Justia.
• Louisiana State Legislature, Louisiana Uniform Transfers to Minors Act, R.S. 9:751 (accessed October 2, 2026).
• Florida Statutes § 710.123, Termination of custodianship (2015).
• Code of Virginia § 64.2-1919, Termination of custodianship (accessed October 2, 2026).
• Wyoming Legislative Service Office, bill summary for 2017 House Bill 97, Wyoming Uniform Transfers to Minors Act amendments (effective July 1, 2017).
• Revised Code of Washington § 11.114.090, Form and manner of creating custodial property (accessed October 2, 2026).
• California Probate Code § 3920.5, via FindLaw (accessed October 2, 2026).
• Fleming & Curti, PLC, “Claim Against UTMA Custodian For Taking Funds Filed Too Late” (October 28, 2002), summarizing Levine v. Levine, California Court of Appeal (October 17, 2002).
• FinAid, “UGMA & UTMA Custodial Accounts” (accessed October 2, 2026).
• Fleming & Curti, PLC, “An UTMA Account Doesn’t Belong to the Parents” (2025).
• Colorado Court of Appeals, In re Marriage of Nevedrova, 2024 COA 112 (October 10, 2024).
• “Gifts To Minors: Adjusting UTMA, 529 Plans, And Trusts”, Kitces.com (accessed October 2, 2026).
• Capital Group, “Transferring UGMA and UTMA assets” (accessed October 2, 2026).
• Fleming & Curti, PLC, “UTMA Custodian Accountable After Beneficiary’s Majority” (February 8, 2010), summarizing Peter v. Schultz-Gibson, Kentucky Court of Appeals (January 29, 2010), and In re Gould, New York Surrogate’s Court (May 26, 2009).
• Maryland General Assembly, 2005 Senate Bill 3, Maryland Uniform Transfers to Minors Act, Qualified Minor’s Trust (Chapter 455).
• New Hampshire Revised Statutes RSA 463-A:20, Termination of Custodianship (accessed October 2, 2026).
• Benjamin Orzeske, “Uniform Laws Update: The New Uniform Transfers to Minors Act”, Probate & Property, American Bar Association (September/October 2026).
• Internal Revenue Service, “Topic no. 553, Tax on a child’s investment and other unearned income (kiddie tax)” (accessed October 2, 2026).
• Chase, “Can a custodial account affect financial aid eligibility?” (accessed October 2, 2026).
• Fidelity Investments, “Turbocharge your child’s retirement with a Roth IRA for Kids” (accessed October 2, 2026).
• Fidelity Investments, Trump Accounts guide, Fidelity Learning Center (accessed October 2, 2026).

This article is for general educational purposes only and is not legal or tax advice. State laws vary and change. The table reflects the sources cited here as of October 2026, and a particular account can carry a different age depending on how and when it was created. Court decisions described here applied their own states’ laws to their own facts, and several are summarized from a law firm’s reports rather than from the opinions themselves. Organizations and products named are examples, not endorsements. GoodNest does not provide legal, tax, or investment advice and does not hold or invest funds. For decisions about a specific account, talk with an estate planning attorney in your state.