What is a custodial account?
A custodial account allows a parent, guardian, or other family members/friends to open an investing account for a minor*.
The adult (or Custodian) who opens the account can manage the money and investments until the minor reaches the “age of majority.” That age is usually 18 or 21, depending on the Custodian’s state.
What happens when the child reaches the age of majority?
When the minor is old enough, money in a custodial account becomes their property.
The assets deposited into a custodial account cannot be taken back or given to someone else.
Can the money be used to help the child before they are the age of majority?
Money in a custodial account can be used by the parent or legal guardian, but only to do things that benefit the child.
Some examples of uses that benefit a child include:
- Education (preschool, daycare etc.)
- School uniforms
- Activities or lessons (music classes, swimming lessons etc.)
What if I’m not sure if something counts as benefitting the child?
If you’re not sure whether something you would like to use the money for qualifies as benefitting the minor, a financial advisor can help you answer the question.
*The age of a minor varies by state. Some states consider anyone under 18 a minor. Other states consider individuals minors until they are 21.
*To withdraw funds from a custodial account please contact support.
Related questions View all Custodial
Q. When will my trades get executed in my Smart portfolio?
Once your money has completed the transfer and arrived in your account, we’ll execute your trades. Typically, this takes 1-2 business days. Please note that a business day is Monday through Friday, excluding weekends and US market holidays. DISCLOSURES This type of account is a Discretionary Managed Account.…0
Q. Once I deposit money into my Smart portfolios, do I need to do anything?
Nope! We’ll handle the rest—this is smart investing, after all. You might want to consider investing (depositing money) regularly, though. That way your investments can grow through the magic of compound interest. DISCLOSURES This type of account is a Discretionary Managed Account.…0
Q. How much can I withdraw from my smart portfolio?
You can request a withdrawal from your smart portfolio for up to the total value of your Smart portfolio — minus any pending withdrawals. For example, if your Smart portfolio is worth $1,000, you can request a withdrawal for the full balance of $1,000 or any number up to $900.…0
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