Choose from a variety of different accounts to help you meet your goals. Open an accountMore to explore Saving enough for college? Confirm if you're on track with our college savings calculator. Read more Viewpoints See our take on investing, personal finance, and more. Managing...
Can you transfer a custodial account to a 529 savings account? Should you? UTMA to 529: Making the Transfer Learn what’s involved in transferring custodial UTMA assets to a 529 account. UTMA to 529: Quest for Control The rules for 529 accounts give strong control to the adult owner. But...
They set up an UTMA account for the purpose of paying for their child’s college education — but he received a full scholarship and doesn’t need the UTMA money for college. The couple now would like to use the assets in the UTMA account to bolster their retirement savings. Unfor...
What are other helpful financial gifts for children? For financial gifts that aren’t a basic savings account, choose from: A piggy bank.Start younger kids on a solid financial path with a simplepiggy bank. By storing their spare change for a rainy-day purchase, you’re more clearly teachin...
UGMA/UTMA accounts aren’t limited to education expenses. Withdrawals can be used for anything that benefits the beneficiary. Investors who want the beneficiary to gain control of the account Once the age of majority has been reached — 18 or 21 in most states — the beneficiary is entitled ...
The UTMA allows you as an adult to set up a custodial account for a minor, who owns any assets placed in the account. You may act as custodian of the account or name another adult to serve in that role. The UTMA is similar to the Uniform Gifts to Minors Act (UGMA) in many respect...
The UTMA account built upon UGMA in the 1980s, but both were supplanted by much better college savings plans later.What Are They?For now, let’s talk about them like they’re the same thing and get into the differences later.At their core, UGMAs and UTMAs are custodial accounts that ...
Custodial accounts let parents, grandparents, and others invest funds for a minor. The accounts offer potential tax benefits and the flexibility to use funds for educational or non-educational expenses. What is a custodial account? An account where an adult serves as custodian and holds supervisory...
UTMA accounts can be a useful tool for keeping certain investments and property in a minor’s name as long as an appointed adult custodian oversees account transactions.
The minor named in the UTMA can avoid tax consequences until they attain legal age for the state in which the account is set up. The donor can name a custodian, who has the fiduciary duty to manage and invest the property on behalf of the minor until they become of legal age. ...