How can I set up a custodial account for a child?

Q: How can I set up a custodial account for a child?

OPEN UGMA/UTMA ACCOUNT IBKR offers UGMA/UTMA accounts to individuals or entities who wish to manage an account for a minor until that minor reaches a specific age. Both are custodial account set up under the rules of a state's Uniform Gift to Minors Act or Uniform Transfer to Minors Act. These accounts can offer tax benefits and contributions are generally considered irrevocable transfers. Important account attributes include: Only Cash type accounts are offered, no margin type; Available to U.S. residents only; and Accounts can only be managed by a single user. Note As IBKR does not offer tax advice or guidance, we recommend that donors consult with a tax and/or estate specialist before setting up a UTMA or UGMA account.

Question

Accepted Answer

OPEN UGMA/UTMA ACCOUNT

IBKR offers UGMA/UTMA accounts to individuals or entities who wish to manage an account for a minor until that minor reaches a specific age. Both are custodial account set up under the rules of a state's Uniform Gift to Minors Act or Uniform Transfer to Minors Act. These accounts can offer tax benefits and contributions are generally considered irrevocable transfers. Important account attributes include:

Only Cash type accounts are offered, no margin type;
Available to U.S. residents only; and
Accounts can only be managed by a single user.

Note

As IBKR does not offer tax advice or guidance, we recommend that donors consult with a tax and/or estate specialist before setting up a UTMA or UGMA account.