Question: are utma accounts a good idea?
Answer: UGMA / UTMA accounts can be good for some things, bad for others. ... UTMA (Uniform Transfers to Minors Act) has replaced UGMA (Uniform Gifts to Minors Act) in most states. The main "upgrade" is greater flexibility - UGMAs only hold securities, UTMAs can hold securities and others assets, such as real estate.