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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 manages the investments until the minor reaches the age of majority. That age is usually 18 or 21, depending on the Custodian’s state.

Click here to open a Custodial account

Stash offers two types of Custodial accounts, as allowed by state law:

  • Uniform Transfer to Minors Act (UTMA): Allows virtually any kind of asset, including real estate, to be transferred to the minor. 
  • Uniform Gift to Minors Act (UGMA): Limits gifts and transfers to securities and bank deposits. 

The account type (UTMA or UGMA) is decided by which state the person opening the account (the Custodian) resides in.


What happens when the child reaches the age of majority?

When the minor reaches the age of majority, all of the money in the 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 before the child reaches the age of majority, but only to do things that benefit the child.

Some examples of uses that benefit a child include:

  • Educational expenses (including school uniforms)
  • Daycare
  • Activities or lessons (music classes, swimming lessons etc.)

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.


Need to withdraw funds from a custodial account, or transfer the account to a minor who has reached the age of majority? Please give us a call at 800-205-5164 from 8:00 a.m.-8:00 p.m. ET Monday-Friday, or email us at



“Kids Portfolio” is a custodial UGMA / UTMA account. Money in a custodial account is the property of the minor. This type of account is a Non-Discretionary Managed account.

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