Series 22: Custodial Accounts

Custodial Accounts

Custodial accounts are accounts administered by an independent person (custodian) for the benefit of an individual accountholder (beneficiary). Custodial accounts include employee retirement accounts and accounts belonging to a minor.

Most states have enacted a Uniform Transfers to Minors Act (UTMA), which supplements or replaces their previous Uniform Gifts to Minors Act (UGMA). An UGMA or UTMA account is a custodial account set up by a parent or other donor to save money for a minor for future needs of many sorts. The UGMA/UTM