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. How do I pause Recurring Transfers?
You can pause Recurring Transfers in the app or on the web. To pause your Recurring Transfers via the app. 1. Click on Spend from the home screen 2. Click the gear icon in the top right corner 3. Click Transfers,…3
Q. Do I need to sell my SUNOCO (SUN) stock?
You no longer have to sell your shares of SUNOCO (SUN). Please read below for more information on our decision. We heard you loud and clear on our message about Sunoco. We always strive to guide you and help you make good investing decisions.…3
Q. How do I set up automatic dividend reinvestment?
For retirement and custodial accounts, your dividends will be automatically reinvested (at this time we do not offer the option to turn dividend reinvestment off for these accounts) For your personal investment account, follow these steps to start reinvesting dividends into your portfolio.…1
Didn’t find your question?
Shoot us your question and our Stash experts will get back to you.Submit a question
Intro to Stash: Everything You Need To Know To Start Investing
The Stash Way is a few simple principles at the core of investing with Stash.
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.