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. Why can’t I add more investments to my Set Schedule?
You may have reached the Set Schedule investments limit. Stash has a limit of 500 Set Schedule allocations for all Stashers to avoid an error that could put your Set Schedules at risk of not executing. To add new investments to Set Schedule,…3
Q. What’s Plaid?
Plaid is a technology that allows for people to connect their financial accounts to a mobile application. It makes it possible for your external bank and Stash to talk to one another. When you link Stash to your external bank, Plaid encrypts your bank information,…0
Q. How do I opt out of Plaid?
You can easily opt out of Plaid in the app. Here’s how to get started: From the Home screen, tap your account icon in the top left corner Tap on Personalization & Data below Privacy & Legal Tap Opt-out of transaction data sharing at the bottom of the screen …0
Didn’t find your question?
Tell us what you’re looking for, and we’ll search for resources that could help.Ask your question
Fiduciary 101: Why it’s Our Job to be Your Advocate
It’s a big word that means a lot when it comes to handling your money. It defines a relationship built on trust and duty.
Debt and Equity: What Every Smart Investor Needs to Know
You can invest in debt & in equity, but do you really know what that means? We break down the jargon.