Navegó a una página que no está disponible en español en este momento. Seleccione el enlace si desea ver otro contenido en español.

Página principal

About Custodial Accounts

Give a gift for the future

Custodial accounts let parents, grandparents, and others invest funds for a minor. The accounts offer potential tax benefits and 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 (UTMA) or the Uniform Transfer to Minors Act (UTMA) rules depending on the state statutes.

Income eligibility restrictions 


Contribution age limits 

Generally up to age of termination (18 – 21) depending on state rules

Maximum yearly contribution per minor

No limit. Donor can gift up to $17,000 ($34,000 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

Choose how you want to work with us

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.

Mobile access anytime, access anywhere

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.