The Schwab One ® Custodial Account is a brokerage account that allows you to make a financial gift to a minor and help teach them about investing. It is set up and managed by an adult, and turned over to the child when he or she reaches the age of majority.
Do I need a custodial account?
You likely want a custodial account. A custodial account is a common way for adults to start an investment account for a child, whether their own child, a grandchild or another minor.
When can a child use a custodial account?
A custodial account is an irrevocable gift and must be turned over to the child when he or she reaches the age of majority, typically 18 or 21 (or up to 25), depending on the governing state. Any funds used prior to the age of majority must be used for the sole benefit of the minor.
