UGMAs are available in all 50 US states, but you can't open an UTMA in South Carolina or Vermont. If you live in either of these states, you'll have to go with an UGMA.Your contributions into an UGMA are more limited than with an UTMA.
"Not all families are in position to put trusts in place," Wyckoff said. "There's a legal process you have to go through sometimes, and it's expensive. The UTMA is literally a designation that has been created for us by the IRS. And you just open the UTMA, and you assign the asset to it. Simple."You may choose to use an UTMA/UGMA as a college savings plan, as you would with a state-sponsored 529 savings plan.
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