About Custodial Accounts

Give a gift for the future

Custodial accounts let parents, grandparents, and others invest funds for a minor. The accounts offer the flexibility to use funds for educational or non-educational expenses. 

What is a custodial account?

An account where an adult serves as custodian and holds supervisory powers over the investments. The account will conform to Uniform Gift to Minors Act (UGMA) or the Uniform Transfer to Minors Act (UTMA) rules depending on the state statutes.

Income eligibility restrictions 

None 

Termination of Custodial Accounts 

Upon the minor reaching the age of termination. Generally 18 to 21 depending on state rules. (18 – 21) depending on state rules

Maximum yearly contribution per minor

No limit. In 2025, donor can gift up to $19,000 ($38,000 for married couples who file jointly) without incurring gift-tax implications.

Minimum initial investment 

Varies by account

Taxation of earnings and withdrawals

Earnings are taxable to the minor and could be subject to higher tax rates

Qualified withdrawals 

Funds can be used at any time but only for the benefit of the minor. Subject to state law.

Penalties for nonqualified withdrawals 

Not applicable 

Ownership of assets (for financial aid)

The assets and any income generated in the custodial account are the student's for financial aid purposes

Commissions and fees 

Vary by account

Need advice? Ready to open a custodial account?

Call our toll-free number 1-866-243-0931

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Compare your options side by side

Custodial accounts, known as Uniform Transfer to Minors (UTMA) or Uniform Gift to Minors (UGMA) are different from college savings accounts. Learn more from our comparison table.

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Wells Fargo Advisors empowers your investment. Use your smartphone or tablet to:

  • View account activity
  • Get real-time quotes 
  • Access market data 
  • Track open orders
  • Manage watchlists and alerts

With this kind of access, you can seamlessly navigate to Wells Fargo Mobile Banking to pay bills and transfer funds.

Investment and Insurance Products are:
  • Not Insured by the FDIC or Any Federal Government Agency
  • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
  • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.

Call Us

For new Wells Fargo Advisors accounts

1-866-243-0931

Mon – Fri: 8:30 am – 9:30 pm

Eastern Time

For existing accounts

WellsTrade: 1-800-TRADERS or 1-800-872-3377

Wells Fargo Advisors: Contact your Financial Advisor 

Important Information and Footnotes

For children younger than age 19 (or 24 for a full-time student), the "kiddie tax" rules may be applicable. If applicable, the minor's unearned income from the custodial account may be taxed at the higher of the parent's marginal tax rate or the child's tax rate. Discuss these rules with your tax advisor to determine if they are applicable to your specific tax situation.  

Disclosures

  • WellsTrade® and Intuitive Investor® accounts are offered through WFCS.

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