Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDavid BerenSun, August 23, 2026 at 10:43 PM GMT+2 5 min readQuick ReadUTMA custodial accounts irrevocably transfer to the grandchild at age 21, giving them full legal control to spend the money however they choose.A 529 keeps the owner in control indefinitely and allows penalty-free beneficiary reassignments or a $35,000 Roth IRA rollover under SECURE 2.0.California and a few states let donors extend UTMA control to age 25, but once the account opens, the termination age in the paperwork is locked.Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.A custodial account opened for a grandchild under the Uniform Transfers to Minors Act transfers to the beneficiary at the state's age of termination, typically 21. At that point, the new adult owner controls how the funds are spent, and the former custodian has no legal authority over the account. A 529 college savings plan operates differently, with the account owner retaining control indefinitely. The distinction between a UTMA custodial account and a 529 plan matters for grandparents evaluating how to structure gifts to minors.Pixel-Shot / Shutterstock.comOwnership Transfers Automatically at the Termination AgeA UTMA account, or the older UGMA version, is an irrevocable gift the moment you fund it. You serve as custodian, but the assets already belong to the minor. When the child hits the state's age of termination, the brokerage retitles the account into the new adult's own name, and your signing authority ends. From that day forward, the account owner decides what the money buys. As Clark Howard summarized on his podcast, when he reaches the age of majority, which, depending on the state, is 18 or 21, you lose control of that money, and if that grandchild turns out not to be as mature as you would hope, they can spend it however they want._________________________________What's Your Number...?Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor)__________________________________________State Statute Governs UTMA Termination AgeUTMAs run on state law. Every state except South Carolina has adopted the Uniform Transfers to Minors Act, and each one picks its own termination age. Most default to 21. A handful, including California, Nevada, and Tennessee, let the donor stretch it to 25 if you specify that age when opening the account. States like Georgia and Kentucky release at 18. Once the account is open, the age selected on the paperwork controls.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info