UGMA stands for Uniform Gift to Minors Act. UTMA means Uniform Transfer to Minors Act. These are things that can be given to minors to ensure that they will be secure without the need to have a trust fund. There are some differences between the two. One of the main differences is the number of years that it will take before the plan matures.
UTMA will mature after 15 years while UGMA will mature after 18 years. A UTMA account is normally used to pay for college but there are also times when it can be used for some of the minor things that a student may need such as living expenses. The tax rate for both is normally lower as compared to those that will be used by adults.