Put Money Into a Custodial Account
Looking for a safe way to store money for your child or grandchild? Then why not a Uniform Gift to Minors Act (UGMA) or a Uniform Transfer to Minors Act (UTMA)? These are for kids you believe to be especially responsible since they will be able to access the funds when they turn 18.
That means that they might decide not to further their education and instead use the money for a deposit on a home or small business- it’s up to them.
The two custodial accounts are almost indistinguishable with one small difference. UGMAs can hold cash, mutual funds, stocks and so on and so forth, while UTMAs can hold the same plus real estate.
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