For years attorneys have been plagued by obstacles when their clients make gifts to minors. The purpose of this study is to point out some of these difficulties and to discuss the Uniform Gifts to Minors Act, which has been adopted in many jurisdictions, including Nebraska. Major difficulties are the inability of the minor to deal freely with property, and the widespread and justifiable hesitation to deal with infants. This problem becomes especially acute when a donor wishes to transfer securities because it is generally imperative for effective management that stock certificates be easily transferable. The objects of the act are (1) to provide a simple method of making gifts to minors which is standardized and orderly and (2) to satisfy the provisions of the 1954 Internal Revenue Code relating to the annual gift tax exclusion of $3,000 and to have the income from the gift taxable as a separate entity in the hands of minor.

I. Introduction

II. Examination of Potential Solutions … A. Guardianship as a Solution … B. Trust as a Solution … C. Less Formal Methods as Solutions

III. The Act—Effect … A. Giving Stock in Registered Form … B. Giving Money … C. Conflict Problems … D. Section by Section Analysis … 1. Choice of a Custodian … 2. Powers in Trust … 3. Investment Standard … 4. Custodial Compensation … 5. Exonerating Provisions … 6. Stock Transfer Procedure … E. Tax Consequences … 1. Gift Tax … 2. Income Tax … 3. Estate Tax