Account Types
Assets in a UGMA/UTMA custodial account transfer to the minor beneficiary at:
UGMA/UTMA: automatic transfer at majority. No custodian control over timing.
Complete Analysis & Legal Rationale
Custodial account assets automatically transfer to the beneficiary at the age of majority, which varies by state (typically 18 or 21). The custodian has no discretion to delay or prevent this transfer.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Age 16 is below the age of majority in all states.
Matches the verified teaching point in the explanation.
Age 25 exceeds the statutory age of majority.
The transfer is automatic by law; the custodian cannot delay it.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.