Give Your Child a Head Start on Wealth
A custodial account lets you invest on behalf of your child — in stocks, ETFs, and more — until they're ready to take the reins. No trust required. No minimums to get started.
Portfolio Value
$12,450.00
What Is It?
What Is a Custodial Account?
A custodial account is a brokerage account you open and manage on behalf of a minor. You make the investment decisions, contributions, and trades — and when your child reaches adulthood (typically between 18 and 25, depending on your state), ownership transfers to them.
These accounts are commonly referred to as UGMA or UTMA accounts, named after the Uniform Gifts to Minors Act and the Uniform Transfers to Minors Act — the legislation that makes it possible to legally gift financial assets to a child. Money placed in a custodial account is an irrevocable gift: it belongs to the child from the moment it's deposited.
Why Open a Custodial Account?
The advantages of GoStockMe
No Contribution Limits
Deposit as much or as little as you want, whenever you want. Anyone — parents, grandparents, relatives, family friends — can contribute.
No Minimum to Open
You can start investing for your child with your very first dollar. Some individual investments may carry their own minimums, but the account itself has none.
No Restricted Uses
Unlike a 529, the money in a custodial account isn't limited to educational expenses. It can be used for anything that benefits the child — college, a car, a business, or anything else.
No Early Withdrawal Penalties
There are no penalties for withdrawing funds, as long as the money is being used for the child's benefit.
Invest in What You Know
Buy individual stocks, ETFs, and more — right from the GoStockMe platform your family already uses.
A Real Financial Education
Involve your child in watching the account grow. It's one of the most effective ways to teach real-world investing skills before the account becomes theirs.
How It Works
From opening to ownership
You Open the Account
As the adult custodian, you create the account in your child's name in just a few minutes through GoStockMe.
You Fund & Invest
Add money from your own account or accept contributions from family and friends. Then choose the investments.
The Account Grows
Your child's portfolio builds over time. Watch it together — and use it as a teaching tool as they grow up.
Ownership Transfers
When your child reaches the state-mandated age (generally 18–25), the account becomes fully theirs. You'll be notified when it's time to initiate the transfer.
What to Know Before You Open
It's an Irrevocable Gift
Once money goes into a custodial account, it belongs to the child. You cannot take it back for your own use — only spend it for their benefit.
Earnings Are Taxable
Investment income in a custodial account is subject to taxes. In 2026, unearned income above $2,700 is taxed at the parent's rate. A portion of earnings below that threshold may be taxed at the child's (generally lower) rate.
Gift Tax May Apply
Individuals can contribute up to $19,000 per year ($38,000 for married couples who elect to gift-split) without triggering gift tax in 2026.
Financial Aid Impact
Because custodial accounts are considered the child's asset, they can have a greater effect on federal financial aid eligibility than accounts owned by a parent.
The Child Takes Full Control at Age of Majority
Once the account transfers, your child can use the funds for any purpose — there are no restrictions. This is something to weigh when deciding how much to contribute.
Is a Custodial Account Right for You?
A custodial account is a great fit if:
- Your child has received an inheritance or monetary gift you want to invest on their behalf
- You want a flexible, general-purpose investment account with no spending restrictions
- You're looking for an easy way to involve family in contributing to a child's financial future
- You want to introduce your child to real investing while they're young
If your primary goal is saving for college specifically, a 529 plan may offer better tax advantages. If you want more control over how and when assets are transferred, a trust might be worth exploring — though trusts are typically more complex and may require an attorney.
Frequently Asked Questions
Disclaimer: GoStockMe does not provide legal or tax advice. This content is for educational purposes only and should not be construed as tax or legal guidance. Tax laws are subject to change. Please consult a qualified attorney or tax professional regarding your specific situation. Investing involves risk, including the potential loss of principal.