Uniform Gifts to Minors Act - UGMA

See: UTMA.

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 (about $25k a kid these days if both parents contribute), Junior, Jr. might not even have to pay taxes on the gift—as long as you follow a bunch of rules.