Custodial accounts, known as Uniform Transfer to Minors (UTMA) or Uniform Gift to Minors (UGMA) are different from college savings accounts. Learn more from our comparison table.Mobile access anytime, access anywhere Wells Fargo Advisors empowers your investment. Use your smartphoneOpens Dialog or...
Custodial accounts may be opened and maintained by any person for the benefit of a minor. Most custodial accounts are set up by a parent, grandparent, or other adult family member or guardian on behalf of a child under the state’s age of majority (the age of majority is 18 in most s...
a bank, credit union, investment firm, orbrokerage account. A minor dependent is a person who is under the age of 18-21, depending on the laws of the state in which they reside. Parents or guardians can set up custodial savings and investment accounts as early as when the child is ...
This is based on the Uniform Gifts to Minors Act or the Uniform Transfers to Minors Act — the legislature that allowed for the formation of these custodial accounts. To arrive at our list of the best custodial accounts, we looked at factors that matter most to both the adult who started...
Custodial accounts are commonly used because laws in most states do not allow children or legal minors to operate their own bank accounts. However, in some states such as Oklahoma, children can open their own bank accounts. Many people open joint accounts along with their young children and eff...
The Uniform Transfers to Minors Act (UTMA) This account allows you to hold virtually any type of asset or property, including: Stocks Bonds Mutual funds Real estate Fine art Intellectual property UTMA accounts don’t have annual contribution limits, though gift tax may apply. Gifts and transfers...
They won’t learn the true power of compound interest by sticking their savings into a bank account these days, with interest rates being as minuscule as they are. And you can’t add their savings to your own investment accounts, without tax implications. So, where can one turn?
Custodial accounts fall under the Uniform Gift to Minors Act and Uniform Transfers to Minors Act. These accounts require an adult to serve as custodian for a minor child, who actually owns the assets in the account. The custodian and other donors can give any amount of cash, stocks and bond...
These custodial accounts, which are named for the Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA), let investors take advantage of the lower tax rate for children while saving for education. Investors who want a tax-advantaged investment Anyone can contribute...
While nottax-deferredlike IRAs, custodial accounts have some tax advantages known as thekiddie tax. The IRS considers the minor child the owner of the account, so the earnings are taxed at the child's tax rate up to a certain point. Every child under 19 years old—24 for full-time stud...