A Uniform Transfers to Minors Act account is a custodial account that an adult sets up on behalf of a minor, explains OppenheimerFunds. The account is usually set up at a bank or brokerage firm, and the custodian can make withdrawals from the account for the benefit of the child.
A UTMA account consists of money or assets, such as mutual funds, stocks, bonds and certificates of deposit, according to OppenheimerFunds. UTMA accounts are irrevocable, and assets in the account cannot be taken back by donors once contributions have been made. Depending on the state where the account exists, it remains in control of the custodian until the beneficiary turns 18 to 21 years old, at which time control is turned over to him and he can then use the funds as he chooses.