custodial accounts
Child's managed money
Custodial accounts are financial accounts held by an adult on behalf of a minor.
The custodian manages the assets—investments, cash, or property—until the child reaches legal age, typically 18 or 21 depending on the state.
Common types include UGMA and UTMA accounts.
Unlike trust funds, custodial accounts transfer ownership automatically when the minor comes of age: She opened a custodial account for her grandson's college fund.
- trust fundsManaged assets for beneficiaries
- mutual fundsCollectively managed securities portfolios
- minorScale with lowered third
- minor childLegally underage offspring
- college savingsReserves for higher education
fiduciary duty · stocks · bonds · beneficiary · age of majority · legal age · guardian · trustee · parent · financial advisor · financial planning · probate law · scholarship funds · executor · legal representative · gift tax · parental control
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