If you are considering a gift of stock, bonds, or cash to a minor - defined for most purposes as anyone under 18 years or age - you may be concerned with whether the recipient can legally own and control such property without the help of an adult.

In Missouri, you may give stock and bonds to a minor under custodianship. If the securities are in registered form, the wording of the registration must be: "John Doe as custodian for Joseph Doe under the Missouri Transfers to Minors Law." These exact words are required by law to avoid confusion and to protect the minor. If the securities are not in registered form, you may simply execute and deliver a written statement of a gift in a document worded according to the law. A gift of money in a bank must be registered the same way. The custodian, depending on circumstances, may be any adult person, or a trust company. A present or gift to a minor under custodianship can never be taken back.

Although, for most purposes, state law regards those persons under 18 as minors, the Transfers to Minor Law defines as a minor anyone under 21 years of age. Therefore, only after a person reaches 21 will he or she receive property from a custodian. This differs from some other legal arrangements, such as instances where the property in a trust may be held longer according to its terms or some where property is delivered to a person after they reach 18 years of age.

Under a custodianship, the property may be paid over for the use and benefit of the minor. If the custodian does not use the property to meet these needs, the minor or the minor's parents may request a court correct the situation.

The custodian has the duty to invest the minor's holdings with prudence, and must maintain detailed records of all investments and income - as well as expenditures. The custodian is entitled to reimbursement for reasonable expenses and if the custodian is not a donor, to fees or commissions.

The donor may also designate another person to assume responsibility, should the custodian resign, become incapacitated, or die.

The Missouri Transfers to Minors Law applies to securities, annuity contracts, life insurance policies, money, interests in real or personal property or limited partnerships.

The law is intended to protect the property of minors from loss. In order to provide for every foreseeable situation, it is extensive and highly technical. Before making a gift of property to a minor, you should be aware that there are additional legal consequences, especially concerning taxes, which cannot be covered in this brief introduction. So, be sure to consult an attorney familiar with such matters before taking action.