Account Types
UTMA accounts are opened under the tax ID of the:
UTMA/UGMA: Minor's SSN, minor owns assets, custodian manages until age of majority.
Complete Analysis & Legal Rationale
UTMA (Uniform Transfer to Minors Act) accounts use the minor's Social Security number as the tax ID. While the custodian manages the account, the minor is the legal owner and income is taxable to the minor. This may result in lower taxes due to the "kiddie tax" rules.
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:
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.