The Details
Any adult can contribute to a minor's future with a custodial account. In a custodial account:
- The investments are owned by the minor, but the person who opened the account has control of it until the minor reaches the age of majority (age depends on the state in which the account was opened).
- Under the annual federal gift-tax exclusion, each donor may generally make gifts of $12,000 (or $24,000 jointly with a spouse) per year, per child without federal gift tax consequences. Consult your tax advisor about your individual situation.
- The beneficiary on the account can't be changed.
- Once invested, the assets (money or securities) in the account can't be reversed. They are the property of the minor.
Get started
Our investment professionals can give you personal one-on-one guidance.
Find an investment professional at a WaMu financial center near you for a free consultation.
