UTMA laws in New York are designed to help protect assets left to minors. The UTMA laws determine limits and guidelines for when minors may receive their inheritance, even when it is left in the capable hands of a custodian. Each state has different UTMA laws.
Life insurance proceeds, business assets, real estate and all other property in an estate, can all add up to a large inheritance which could be left to a minor. A testator may make age requirements in his will which dictate the age at which a minor can receive the inheritance, or even set a percentage to be given at specific ages. Most testators will assign a custodian to be responsible for the preservation and distribution of the assets to minors.
Some states have UTMA laws which allow a custodian to keep control of assets in the UTMA until age 25, but in New York the law is as follows:
Trusts law §§7-6.1 and following
In New York, a testator may establish an age older than 21 for receiving an inheritance by establishing a trust and designating a trustee to distribute assets rather than using an UTMA. Both UTMA’s and Trusts have benefits and drawbacks.
Experienced New York Estate Planning and Trust Attorney Elga Goodman can help you understand your options when deciding how to protect your beneficiaries. Contact us today at 973-841-5111.
