Alternatively, he or she may convert the account to his or her own name, establish the custodian as a joint account holder, or grant the custodian power of attorney on the account. At the age of majority, the account holder may choose to sell any investments in the account or close the account and request a check for the proceeds. When the custodianship ends, the account holder (formerly a child, now legally an adult) will have complete control over the account, and the custodian's access to the account may be restricted. Will I have any control over the account after the child reaches the age of majority? Be sure to ask a Financial Consultant about the laws in your state. It is important to do this when you open the account, since you cannot make any changes later. In some states a custodian can specify the age-18, 21, or even older-when the child will take control of the account (also called the "age of majority"). As a donor, you can designate yourself or another adult to be the custodian of the account.Īt what age does a child take control of the assets in the account? The custodian has sole responsibility to manage the assets for the minor until the custodianship ends. What are the custodian's responsibilities? In other words, you can't take the assets back or give the assets to someone else. Money and assets deposited into a custodial account immediately and irrevocably become the property of the child. Charles Schwab Financial Literacy Surveyįrequently asked questions (FAQs) for custodial accountsĬan I change my mind and take back assets after I've set up a custodial account?.
National Standards in K-12 Personal Finance Education.Lesson Plans and Activities for Educators.Special Guidelines for Loss of a Spouse.Managing Your Finances as You Change Jobs.The Importance of Monitoring and Rebalancing.
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