When preparing an estate plan, special care is needed where a person wishes to leave assets to a minor. This is because asset or property transfers to a minor are often governed by the California Uniform Transfers to Minors Act (UTMA).
Our California estate planning attorney can answer any questions you may have about how to leave assets to a minor in California.
What Is the California UTMA?
The California UTMA governs how property can be transferred to a minor. Under this law, transfers to minors require a custodian—an adult appointed to manage the assets until the minor reaches a specified age, anywhere between 18 and 25.
What a custodian can do:
- Invest or reinvest the property with minimal outside oversight
- Manage the assets on the minor’s behalf until the custodial relationship ends
- Make decisions about the assets once the custodial account or mechanism is established
When the minor reaches the specified age, the custodial relationship ends automatically. At that point, the minor gains full control of the assets with no further restrictions on how they’re used.
How the California UTMA Interacts With Your Estate Plan
Even if you don’t explicitly designate a UTMA transfer in your will or trust, your executor or trustee can still use this mechanism. It’s often the simplest way to transfer assets left to a minor.
| Asset Value | What’s Required |
| Under $10,000 | Transfer can be completed without court involvement |
| Over $10,000 | Court must approve the custodial arrangement (with certain exceptions) |
Using a Trust to Leave Assets to a Minor
A trust is often the more flexible—and more powerful—option for leaving assets to a minor. Unlike a UTMA custodial account, a trust gives you precise control over when, how, and under what conditions a minor receives assets.
Advantages of using a trust:
- Set the timing and amount of distributions
- Restrict how funds can be used (e.g., education or medical expenses only)
- Provide for a minor with special or unique needs
- Delay full asset access beyond age 25—even to age 35 or later
- Allow for graduated access tied to specific birthdays or milestones
- Appoint a trustee to manage assets for the beneficiary’s entire lifetime if needed
Structural options include:
- A separate trust for each minor, giving you individualized control
- A single-family (pot) trust that provides for multiple minors under one structure
Trusts may also carry tax advantages over custodial accounts. The right structure depends on your specific goals—and it’s worth discussing with a qualified estate planning attorney before deciding.
Which Option Is Right for You?
There’s no one-size-fits-all answer when it comes to leaving assets to a minor. The best approach depends on factors like the size of the estate, the minor’s age and needs, your concerns about financial maturity, and your broader estate planning goals.
Quick comparison:
| UTMA Custodial Account | Trust | |
| Control over distributions | Limited | Full |
| Age cap on asset access | Max age 25 | No limit |
| Court involvement (>$10K) | Yes | No |
| Tax advantages | Minimal | Possible |
| Best for | Simpler transfers | Complex or larger estates |
Speak With an Estate Planning Attorney
You have several options for leaving assets to a minor, and every situation is different. An experienced estate planning attorney can tailor a plan to your personal circumstances and help you make the right call.