Custodial Accounts for Young People

When you're ready to start saving for your child's future, your credit union can help. We offer accounts that can be opened under the Virginia Uniform Transfers to Minors Act (VUTMA) for the benefit of a minor. This type of account requires that an adult over age 18 be named as a “custodian” of the account.

• Only one minor and only one custodian are named on the account
• Only the custodian can withdraw from the account, make deposits or close the account
• Once the child reaches 18 (or age 21 if so specified when the account is opened), the custodian can turn over full access to the account funds to the child

Custodial account benefits

• Convenient way to save for the benefit of a minor child while limiting the child's access to the account
• Allows parents or other interested persons to make monetary gifts to minors
• Easy way to save for long-term goals, such as college tuition
• May be used with savings, certificate and checking services

Additional features

• Funds may be used only for the benefit of the minor
• Accounts are opened with and any reportable dividends would be reported under the minor’s social security number
• At any time a successor custodian can be named by the custodian. The successor custodian would control the funds only upon the death of the current custodian or if the current custodian is unable to perform his/her duties, or resigns

The establishment of a custodial account may have legal and tax limitations, including income, gift, and estate tax consequences. You may want to consult your tax advisor before opening a custodial account.

Other account ownership options
If you wish for the minor to have equal access to an account, consider setting up an account with joint ownership.

Please contact us if you need help or if we can help you in any way.