UGMA (Uniform Gift to Minors Act) and UTMA (Uniform Transfer to Minors Act) Accounts are custodial accounts, which are designated for a child but managed by a parent until the child becomes an adult. While these accounts are less tax-favorable than 529 accounts and they reduce how much financial aid the student will be eligible for (because they are counted as the student’s asset, rather than the parent’s asset), they have the advantage of greater flexibility in spending. These accounts can cover testing, transportation, and application fees. They can also be used for non-education related expenses.