The minor’sSocial Security number (SSN)is used for tax reporting purposes on UTMA accounts.3Because assets held in a UTMA account are owned by the minor, this may have a negative impact when the minor applies forfinancial aidorscholarships.4 Each state has the option to adopt or amend the...
It’s enough to know that they are just laws that made a legal way to give assets to a minor who normally can’t enter into contracts due to their age.Neither of these accounts were created specifically for college savings, but it quickly became a primary way to do so. When the UGMA...
What is a gift savings account? A gift savings account is a custodial account designed to help you accrue savings for a minor. The account is managed by a custodian — a parent, other relatives or a family friend — who monitors deposits and the balance as it grows. It’s protected unti...
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.