What is a UTMA or UGMA custodial account?

A UTMA or UGMA custodial account is a flexible investment account that helps minors save and invest. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations.

What are UTMA and UGMA Accounts?

Learn more about it. UTMA and UGMA accounts are custodial accounts designed to be used to invest money for the needs of a minor child beneficiary. Any adult—parents, grandparents, other family members, friends, and others—can establish and contribute to these accounts. Gifts to a custodial account are irrevocable once made.

What does a UGMA account custodian do?

The account custodian manages any investment assets in the UGMA or UTMA account. The custodian can also withdraw funds to cover expenses related to the welfare or education of the minor recipient. You can name yourself the custodian of the account, although that does not change the irrevocable nature of the transfer.