UGMA/UTMA CUSTODIAL
Custodial accounts, established under the Uniform Gift to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), allow parents or others to contribute to a child's education or future. With these accounts, benefactors can invest up to $12,000 individually—$24,000 if funds are given jointly with a spouse—per year, per child, without triggering a gift tax as long as parents and others stay within gift limits set by the IRS.
All investments in the custodial account are owned by the minor, yet benefactors will have control over the account until the beneficiary reaches age 18 or 21 depending on the state.
Custodial Account Benefits
Custodians can invest in stocks, Treasury bills, Zero-coupon bonds, mutual funds, Series EE U.S. Savings Bonds, and more.
Under the Uniform Transfers to Minors Act, the custodian can maintain control over the account for a longer period and can make different types of investments.
Receive professional guidance from a Wachovia Securities Financial Advisor to help you understand and establish a custodial account, as well as assist you in selecting the types of investments that can benefit a child’s future.
Investment Choices
Learn more about the array of investment choices available to you at Wachovia Securities.
Email This Page
Printer Friendly Version
