Regarding the Uniform Gifts to Minors Act, which statement is NOT true?

The statement indicating that securities must be held in the name of the brokerage firm is not accurate. Under the Uniform Gifts to Minors Act (UGMA), assets, including securities, must be held in the name of the minor, with a designated custodian who manages the account on behalf of the minor until they reach the age of majority. This structure is designed to benefit the minor while allowing the custodian to manage the assets responsibly until the minor is old enough to take control.

The other statements regarding the act are true: securities can only be in the minor's name, gifted securities cannot be revoked once made, and minors do not gain control over the account until they reach a specified age. This ensures that the purpose of the gift—to benefit the minor—remains intact.