Custodial Brokerage Account:  One of the Best Investment Accounts for Kids

These accounts offer some tax advantages, the ability to invest in numerous types of assets and are generally set up for children under the age of 18.

Custodial accounts allow a custodian, typically a parent or guardian, to have an account held with a financial institution that holds assets for the benefit of the named minor on the account.

What is a Custodial Account?

Custodial accounts are typically used to save and invest for a minor in hopes that they will be able to use their funds in a more productive way when they reach adulthood.

What is a Custodial Brokerage Account?

UGMA (Uniform Gifts to Minors Act) accounts are custodial accounts typically set up by parents, guardians, grandparents or other relatives, who then serve as custodian for the child’s account until reaching the age of termination or majority in their particular state.

What Types of Custodial Accounts Are There?

UTMA (Uniform Transfer to Minors Act) accounts are also custodial accounts set up by parents or other custodians and are not limited to a certain dollar amount each year.

What Types of Custodial Accounts Are There?

Custodial accounts allow you to invest in stocks, bonds, exchange-traded funds (ETFs) and mutual funds, but not riskier assets like stock options or choosing to buy on margin.

What is a Custodial Account for Stocks?

Once you open a custodial account, they work like any other account held with a bank or brokerage firm. Two main roles exist for custodial brokerage accounts: 1. The custodian 2. The beneficiary

How Does a Custodial Account Work?

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