What type of custodial account does Stash offer?
Stash offers Custodial Accounts that are called UTMAs (Uniform Transfer to Minors Act) and UGMAs (Uniform Gift to Minors Act) as allowed by state law.
How is the account type determined?
The account type (UTMA or UGMA) is decided by which state the person opening the account (AKA the Custodian) resides in.
What are the differences between these two accounts?
These two accounts are similar, but there is a difference in the kind of assets you are allowed to transfer to a minor.
UGMA law limits gifts and transfers to securities and bank deposits. This means you can’t transfer assets like real estate with UGMAs.
UTMA law allows virtually any kind of asset, including real estate, to be transferred to a minor.
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