Most state laws provide a way to establish a custodial account
under either UGMA (Uniform Gifts to Minors Act) or UTMA (Uniform Transfers to Minors Act).
The UGMA, as originally enacted, did not allow a custodial account
to hold real estate and various other investments.
* Do I need the insurance plan before getting my custodial account
Generally an individual retirement account is set up as a trust or custodial account
with a bank, a federally insured credit union, or a savings and loan association, whereas an individual retirement annuity is established by purchasing an annuity contract from a life insurance company.
Funds may be used for anything, without restriction, resulting in our third C, or "carte blanche!" Neither college nor control is a requirement of a custodial account
. However, custodial accounts
can still be useful for gifting, planning and intergenerational wealth-creation purposes.
When an educational custodial account
is established at a bank or IRS-approved entity, the designated beneficiary must be a child under 18 years of age.
Grudis, who must hold and trade stocks through a custodial account
in his mother Carol's name, is not just bragging but speaking to a national trend among teens.
In addition to these in-house risks, Freddie Mac has expressed concern that many lenders do not understand proper custodial account
Many funds reduce their minimum initial investment for a custodial account
@one in which you control the money for the child).
For example, the earnings on a custodial account
you've set up for your child or a trust account for which you're trustee might be listed as income to you.
The addition of a custodial account
totaling USD2.4 billion late in the first quarter 2016 contributed approximately two-thirds of the increase in asset management revenue on a sequential basis.