Should You Open A Custodial Account For Your Kid?
- By
Julia Austin
Source: davidf / Getty
Here’s type 2
Next there is the Uniform Transfer to Minors Act account or the UTMA. It offers a simple way to transfer funds to a minor without creating a trust, you can contribute up to $15,000 a year (or $30,000 for couples giving separate gifts), and there are no restrictions regarding income level. The funds from this account must be used explicitly for the benefit of the minor, but aren’t limited to strictly education needs, as they are in the Coverdell ESA.
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