Custodial Accounts

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We all know that as the cost of college tuition skyrockets, ensuring our children's financial futures is getting harder and harder. Ease the burden of educational expenses, or any other long-term goals, by setting aside money for your child today.

When you're ready to start saving for your child's future, your credit union can help. We offer accounts that can be opened under the Uniform Transfers to Minors Act (UTMA) for the benefit of a minor. This type of account requires that an adult over age 18 be named as a “custodian” of the account.

Summary
  • Only one minor and one custodian can be named on the account
  • Only a custodian can withdraw from the account, make deposits, or close the account
  • Once the child reaches age of majority (18 to 25), a custodian must turn control of the funds over to the child
  • Convenient way to save for the benefit of a minor child while limiting the child's access to the account
  • Allows parents or other interested persons to make monetary gifts to minors
  • Easy way to save for long-term goals, such as college tuition
  • May be set up as a savings account or certificate 
  • Funds may be used only for the benefit of the minor
  • Accounts can be opened with any amount over $5 and dividends are reported in the minors’ name
  • Legal and tax limitations may apply*

Account Ownership Options

If you wish for the minor to have equal access to an account, consider setting up an account with joint ownership.

If you have any questions or if we can help you in any way, please contact Member Services at (800) 640-1228.

*The establishment of a custodial account may have legal and tax limitations, including income, gift, and estate tax consequences. You may want to consult your tax advisor before opening a custodial account.