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 up to two custodians can be named on the account
- Only a custodian can withdraw from the account, make deposits or close the account
- Once the child reaches the designated age (18 or 21), a custodian must turn control of the funds over 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 set up as savings, certificate or checking services
- Funds may be used only for the benefit of the minor
- Accounts can be opened with any amount and dividends are reported in the minors name.
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.
If you have any questions or if we can help you in any way, please contact Member Services at (804) 323-6800 or (800) 285-6609.