Anonymous
12/16/2025 12:30
Subject: Custodial account for investing
Anonymous wrote:Anonymous wrote:[url]Anonymous wrote:Two family members put money aside for them, one was in a UTMA and the other they put as joint account, so we paid taxes. Two other family members always gave $50 or $100 for every bday or holiday (I think it was like giving their inheritance because it was second wife, not bio) so I finally opened a UTMA and put it in there.
At 20 and 22 they have just over $20K (Including the $$ we turned over to them from joint account) on top their own $$ from working. Neither one is a big spender, so it’s fine.
We have a trust and they won’t get much more until we kick the bucket.
For these amounts I would either use a 529 or just save it and then give them gifts once they hit majority.
If I would have given them the cash gifts when they hit majority, they would have had less cash versus inflation. Putting it in VTI was good for them. Trust me.
You don’t have to save it in a deposit savings account. 🙄
Anonymous
12/16/2025 12:21
Subject: Custodial account for investing
Anonymous wrote:[url]Anonymous wrote:Two family members put money aside for them, one was in a UTMA and the other they put as joint account, so we paid taxes. Two other family members always gave $50 or $100 for every bday or holiday (I think it was like giving their inheritance because it was second wife, not bio) so I finally opened a UTMA and put it in there.
At 20 and 22 they have just over $20K (Including the $$ we turned over to them from joint account) on top their own $$ from working. Neither one is a big spender, so it’s fine.
We have a trust and they won’t get much more until we kick the bucket.
For these amounts I would either use a 529 or just save it and then give them gifts once they hit majority.
If I would have given them the cash gifts when they hit majority, they would have had less cash versus inflation. Putting it in VTI was good for them. Trust me.
Anonymous
12/16/2025 11:31
Subject: Custodial account for investing
It was easy to set up a custodial account with Fidelity. Kids get a lot of money gifts for bdays and holidays, plus I often give them cash for Amazon gift cards they receive. I like that they can see how their pool of money grows over time — great way of learning compound returns. They can control their investments on their own as they get a bit older, and use the money for expenses during or after college.
Anonymous
12/16/2025 10:13
Subject: Custodial account for investing
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For these amounts I would either use a 529 or just save it and then give them gifts once they hit majority.
Anonymous wrote:Two family members put money aside for them, one was in a UTMA and the other they put as joint account, so we paid taxes. Two other family members always gave $50 or $100 for every bday or holiday (I think it was like giving their inheritance because it was second wife, not bio) so I finally opened a UTMA and put it in there.
At 20 and 22 they have just over $20K (Including the $$ we turned over to them from joint account) on top their own $$ from working. Neither one is a big spender, so it’s fine.
We have a trust and they won’t get much more until we kick the bucket.
For these amounts I would either use a 529 or just save it and then give them gifts once they hit majority.
Anonymous
12/16/2025 09:56
Subject: Custodial account for investing
Two family members put money aside for them, one was in a UTMA and the other they put as joint account, so we paid taxes. Two other family members always gave $50 or $100 for every bday or holiday (I think it was like giving their inheritance because it was second wife, not bio) so I finally opened a UTMA and put it in there.
At 20 and 22 they have just over $20K (Including the $$ we turned over to them from joint account) on top their own $$ from working. Neither one is a big spender, so it’s fine.
We have a trust and they won’t get much more until we kick the bucket.
At 20 and 22 they have just over $20K (Including the $$ we turned over to them from joint account) on top their own $$ from working. Neither one is a big spender, so it’s fine.
We have a trust and they won’t get much more until we kick the bucket.
Anonymous
12/16/2025 09:40
Subject: Custodial account for investing
Anonymous wrote:Anonymous wrote:Anonymous wrote:So your kid can launch after college with $500k in investments, like mine.
Love this. We use the UTMA so our children get firsthand stock investment experience. They love it.
Exactly! I just don't understand the mindset of growing your own investments past the point where you can't possibly spend them in your lifetime. It's better for you (tax-wise) and better for your kids (learning, launching) to give them money routinely once you establish they are on a decent path to be a productive member of society. Most don't need an inheritance at age 50-60; it's just not useful at that point.
OK, but the kids get full and complete access to the UTMA at 18-21 (depending on the state). If the UTMA is a small amount, then that's probably not a big deal. But very few 18 year olds are ready to deal with 7 figures.
Anonymous
12/16/2025 08:13
Subject: Custodial account for investing
Anonymous wrote:Anonymous wrote:So your kid can launch after college with $500k in investments, like mine.
Love this. We use the UTMA so our children get firsthand stock investment experience. They love it.
Exactly! I just don't understand the mindset of growing your own investments past the point where you can't possibly spend them in your lifetime. It's better for you (tax-wise) and better for your kids (learning, launching) to give them money routinely once you establish they are on a decent path to be a productive member of society. Most don't need an inheritance at age 50-60; it's just not useful at that point.
Anonymous
12/15/2025 19:55
Subject: Custodial account for investing
Anonymous wrote:So your kid can launch after college with $500k in investments, like mine.
Love this. We use the UTMA so our children get firsthand stock investment experience. They love it.
Anonymous
12/14/2025 11:12
Subject: Custodial account for investing
Anonymous wrote:What is the point of this if you are going to have a trust and will for your kids anyway? Not snark I am wondering if I should open these for my kids.
You’re going to have a trust? As in you haven’t set it up yet? Or it will be established in your will? If it’s a testamentary trust, then a custodial account would have the advantage of allowing you to transfer assets to them while you’re still alive.
Anonymous
12/14/2025 08:32
Subject: Custodial account for investing
So your kid can launch after college with $500k in investments, like mine.
Anonymous
12/14/2025 08:15
Subject: Custodial account for investing
No point and I wouldn't even do trust or will unless you have a lot of money and I want to control the money flow when dead.
Anonymous
12/14/2025 07:59
Subject: Custodial account for investing
If you have an established trust, then probably no point. But they are good for smaller amounts that don’t justify the costs of a trust.
Anonymous
12/13/2025 20:26
Subject: Custodial account for investing
Helpful if you have someone trying to offset their estate w annual gifts (eg grandparent) and don’t have a trust established. I have one for both kids and they are easy to manage. Downside - depending on jurisdiction they turn over at 18 or 21.’ Kids will have too much money at that age so we are moving towards other mechanisms after several years of that.
Anonymous
12/13/2025 19:52
Subject: Custodial account for investing
I wouldn’t. They are kind of a pain and for us at least the amount involved aren’t anything that can’t easily be handled by gifts later
Anonymous
12/13/2025 18:53
Subject: Custodial account for investing
What is the point of this if you are going to have a trust and will for your kids anyway? Not snark I am wondering if I should open these for my kids.