In our Elder Law Issues newsletter this week, we described a bankruptcy court case involving a Uniform Transfers to Minors Act (UTMA) account. Arizona has also adopted the uniform law, and Arizona UTMA accounts would likely be treated in the same way.
But, more importantly, when would someone want to set up an Arizona UTMA account? Should they always use a trust, instead? What are the benefits — and risks — associated with an UTMA account?