During your life, you may have acquired assets that you would like to set aside
for a minor—such as your child or grandchild.
A Custodial Account is an easy way for parents, family members and guardians to
transfer their wealth to a minor, often without requiring the services of an
There are 2 main types of Custodial Accounts, UTMA (Uniform Transfers to Minors
Act) and UGMA (Uniform Gifts to Minors Act). The main difference between these
two types of accounts is — with an UGMA a minor can receive the gifts at 18
years of age and with an UTMA minors can receive the gift at 21 years of age.
Some key benefits of an UGMA and UTMA include:
- Tax benefits. Up to $12,999 per beneficiary, per donor, per year will not be
subject to a gift tax.
- All assets are considered a gift with no limitations on how much you can entrust
to the minor–including money, mutual funds, life insurance, annuities, real
estate and more.
- Easier and less expensive to set up than a trust account.
- Assets are managed by the custodian and then transferred to the minor at the
time he or she becomes a legal adult.*
- Allows the minor to use the assets to help fund their education or for approved
Understand potential conflicts of interest with mutual fund
providers and annuity providers
Ready to get started?
Schedule a financial review with a Financial Consultant today to find out if an
UGMA or UTMA account is right for you. For education funding you may also want
to consider reviewing the benefits of a 529 plan*.
Click here to learn more.
*One should consider the investment objectives, risks, charges and expenses carefully before investing in municipal fund securities.
More information about municipal fund securities is available in the issuer's official statement. The official statement should be read carefully before investing.
Even if you have already started saving with another firm or want to transfer
over an existing UGMA or UTMA account you hold at another bank, a Charter One
Investment Services Financial Consultant can offer you an objective second look
at your existing plan to help ensure you are on track to achieving your
long-term planning goals.
You can also visit a local branch, or we’ll contact
you when you fill out the following quick and easy form:
*Varies based on the state you reside.