Ensure the welfare of your children
Custodial accounts are a convenient way to save for the benefit of a minor child while limiting the child's access to the account. Normally, a custodial account is established to save for a specific goal.
The Uniform Transfer to Minors Act allows parents or other interested persons to make an "irrevocable gift" to a minor without needing a court-appointed guardian. When the gift is given, which means an UTMA account was opened, the money becomes property of the minor. However, the parent/custodian maintains control over those funds until the minor reaches the age of 21.
|Open to ||Minors under age 21 who qualify for membership. The Custodian does not have to be a member. |
- UTMA account shares belong to the minor.
- Custodian is the only person permitted to transact business on the account. The Custodian is responsible for transferring funds to the minor when the minor reaches age 21.
- At any time a successor custodian can be named by the Custodian.
- Dividends on UTMA accounts are considered income to the minor for federal income tax purposes.
| Minimum Balance |
Open a Custodial/PAUTMA Account