Any deposits or gifts made to the account are irrevocable, meaning they can't be changed or reversed. All the account's holdings pass, irrevocably, to the minor at the age of majority.1In contrast, many college savings plans, such as529 accounts, allow parents to retain control of the fu...
Thecustodial meaningcan also be used for other types of account management. Custodial accounts can be used for adults as well with one person, or a team of people, administrating an account for the benefit of a larger group. A good example of this is an employer-based retirement account tha...
Monthly fees can be significant for small balances. Why We Like It Stash offers both DIY and automated investing, meaning it's a good option if you're looking for more customization. Keep in mind that only a standard brokerage account can be managed automatically. If you want an IRA manag...
Depending on where you live, your custodial account with M1 will either be designated as UTMA or UGMA. The two acronyms stand for: UTMA: Uniform Transfers to Minors Act UGMA: Universal Gifts to Minors Act While this is a seemingly minor difference in naming convention, it has an impact on ...
Consider that the interest-bearing meaning in banking is that a business or consumer canearn money for keeping money depositedin the bank. In cases where the interest earned is at a higher rate, the interest can add a good portion to the account balance over the course of a few years. Th...
A custodial client acquires a security entitlement, and thereby enjoys the rights of an entitlement holder, in one of three ways: the bank (securities intermediary) credits the asset as a book entry to the client's account; the bank accepts the a...