Q: What is the utma law when it comes to a death by deed and how does it apply

A: In Texas, a minor can own property. A "transfer on death" deed (TODD) vests title in real property in the grantee upon the death of the grantor. The grantee's age is not a factor. So, for example, if your father owns a house, he could execute a TODD to your son that would transfer ownership of the house to your son upon your father's death regardless of your son's age.

UTMA is the Uniform Transfer to Minors Act. Under UTMA, a person can transfer ownership of money or an asset into the name of an adult custodian for the benefit of a child. Under UTMA, the custodianship ends when the child reaches 21 years of age or 18 years of age for certain assets. Unlike a TODD, the transfer occurs immediately. Unlike a TODD, a child does not have immediate management and control over the property.

A: The UTMA, or Uniform Transfers to Minors Act, facilitates the transfer of assets, including real estate, to minors without the need for a formal trust. Generally, this law allows minors to receive gifts or transfers of property through a custodian until they reach the age of majority, which varies by state but is often 18 or 21. When you executed a "death by deed" for your father, with the intent for your son to inherit the property, the application of UTMA largely depends on how the deed was structured and the specific instructions included for the transfer.

If the deed to transfer property to your son upon your father's passing was not explicitly set up under UTMA provisions or did not designate a custodian to manage the property until your son reaches a certain age, then UTMA might not apply. It's important to examine the language of the deed and any associated legal documents to understand the conditions under which your son would inherit the property. Without a clear stipulation under UTMA, the transfer could be subject to different legal interpretations or state laws regarding inheritance and the transfer of property to minors.

To navigate this situation effectively, reviewing the deed's terms and consulting with a professional experienced in estate planning or real estate law in your jurisdiction is advisable. They can provide guidance on how the law applies to your specific circumstances and what steps, if any, are necessary to ensure your intentions are fulfilled regarding the property transfer to your son. Understanding the nuances of these laws can be challenging, but the right advice can help clarify your son's rights and any actions you might need to take.