Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA). Provisions of state law that allow an adult to contribute cash or securities to a minor child without having to establish a trust. Contributions are irrevocable, and income earned is taxable to the child. For 2007 each donor can contribute up to $12,000 a year per child without incurring any gift tax liability.