May. 06, 2015

HARRISBURG – The House of Representatives voted unanimously today to approve a measure, authored by Rep. Sheryl Delozier (R-Cumberland), which would raise the threshold on custodial account transfers to minors.

House Bill 122 would update the Uniform Transfers to Minors Act (UTMA) to increase the threshold for court approval of a transfer of money from a custodial account to a minor from $25,000 to $50,000.

Currently, the UTMA allows someone to make a gift to a minor, either in a will or without one, without putting the money directly in the hands of a minor. Instead, a custodial account is set up at a bank, and a custodian is appointed. Transfers from the custodial account may be made for the benefit of the minor without court approval as long as the transfer does not exceed $25,000.

“The current threshold on custodial account transfers was last updated in 1999,” said Delozier. “Raising this threshold will allow more flexibility in the management and protection of a child’s assets, without incurring the cost or administrative burden of setting up a trust.”

Additionally, House Bill 122 would allow a court to order funds inherited by a minor to be deposited into a “529 account” for educational savings, which is a tuition assistance program overseen by the Pennsylvania Treasury.

Delozier added that parameters are set up in existing law and will remain under her legislation to prevent fraud and abuse of a child’s assets.

House Bill 122 now moves to the Senate for consideration.

Representative Sheryl Delozier
88th District
Pennsylvania House of Representatives

Media Contact: Abbey Haslam
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