Business & Finance Personal Finance

How to Close a UGMA Account

By Business & Finance Last updated Tuesday, May/28/2024

1). Deposit and transfer all funds or gifts to the UGMA account before the time of termination. The brokerage firm or bank institution you hold the account in will help guide you through the process.
2). Keep track of the termination age on the account. In most cases, it is when the minor is of legal age, usually 18 to 21 years old. In some states, you can set up a preferred age that is different but there probably will be a limit to what you can choose. Setting up a later date will allow the account to remain open longer and accumulate more money.
3). Wait until the minor reaches the age on the account. When that happens, the custodian transfers it to the owner who will have full access to the funds. There cannot be any restrictions on the money.