A custodial account under the Uniform Transfers to Minors Act (UTMA) allows you to save for your child or grandchild’s future needs, including (but not limited to) higher education expenses. Although custodial accounts are not tax-advantaged accounts, earnings and withdrawals may be subject to the child’s tax rate rather than the account holder’s.
What does a UTMA custodian do?
An UTMA custodian has the authority to withdraw and spend money for the benefit of the child who owns the account. But it’s important to note that custodians have a fiduciary role, which means they must responsibly manage the assets with the child’s best interests in mind.
What is a custodial account?
Save for your child or grandchild's future needs. A custodial account under the Uniform Transfers to Minors Act (UTMA), available through PNC Investments, allows you to save for your child or grandchild's future needs. This includes higher education expenses. Anyone can open an account; no income restrictions or qualifications to be met.
