Which of the following is characteristic of a gift under the uniform gifts to minors act?

• A. The gift money's earnings are not subject to the 'kiddie' tax.
• B. The gift is revocable.
• C. Property must be available to the child at the age specified under state law.
• D. The gift must pay out all income to the minor in order for the gift to qualify

Answer: (C)

Under the Uniform Gifts to Minors Act, assets are given to a custodian to hold for the minor until the child reaches the age of majority defined by state law. When that age is reached, the property becomes available for the minor to control and use. That makes the statement about the property being available to the child at the age specified by state law the defining characteristic.

Gifts under UGMA are typically irrevocable—the transfer cannot be undone—and the minor’s control begins only at the state-determined age of majority (often 18 or 21, depending on the state). The income generated by the account can be subject to Kiddie Tax rules, and there is no requirement that all income be paid out to the minor to qualify the gift.