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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

UGMA

Definition:

UGMA is what you say when your mother tells you to go wash your face.

It's also the Uniform Gift to Minors Act, a law from the 70s that outlines the gifts minors can receive and the taxes they have to pay. Thanks to this law, you can give your kid securities and assets without having to set up a trust. If you stay below certain limits, Junior, Jr. might not even have to pay taxes on the gift—but you do have to make sure you follow a bunch of rules.