Account Types
Once a gift is made to a UGMA/UTMA custodial account, the donor:
UGMA/UTMA gifts are IRREVOCABLE. Cannot be taken back or redirected.
Complete Analysis & Legal Rationale
Gifts to UGMA/UTMA accounts are irrevocable. Once contributed, the assets belong to the minor beneficiary. The custodian manages the account but cannot return assets to the donor or redirect them to another person.
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:
Gifts cannot be reclaimed; they are irrevocable.
Matches the verified teaching point in the explanation.
The beneficiary cannot be changed once the gift is made.
The assets belong to the minor immediately, not reclaimable at any age.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.