J
Janet I.
UTMA accounts. Who has them? How do they work? Are they worth it?
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UTMA accounts. Who has them? How do they work? Are they worth it?
My parents arranged for UGMAs for my brother and me. I think doing so has had a positive effect on how we manage our finances. They're going the same for my nephews, and I'm thinking about doing the same.
What is the difference between the UGMA & UTMA? Even if I have 529 savings for my kids is it worth opening a UTMA?
What is the difference between the UGMA & UTMA? Even if I have 529 savings for my kids is it worth opening a UTMA?
The UGMA [Uniform Gift to Minors Act] and UTMA [Uniform Transfer to Minors Act] accounts are similar in that they are both custodial accounts, but there are some significant differences. Termination ages, when the accounts transfer from the custodian to the minor, differ. The UGMA account terminates when the minor reaches age 18. Depending on the state, the UTMA account terminates when the minor reaches age 21-25. Also, the UTMA account allows more types of assets to be transferred.
Is the money in these types of accounts invested or is it based by interest?
I believe that where you open the account will affect the investment options for the money invested. For example, opening such an account through Vanguard should provide you with all the investment options that Vanguard offers.
Thank you so much!
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