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Under the UGMA or UTMA, the ownership of the funds works like it does with any other trust and the donor must appoint a custodian (the trustee) to look after the account for the benefit of the beneficiary. [citation needed] Until 1986, a UGMA or UTMA account allowed the assets to be taxed at the minor's income tax bracket. Tax law changes in ...
One way to do both is with a custodial brokerage account, often referred to as an UTMA or UGMA account -- named for the Uniform Transfer to Minors Act and the Uniform Gift to Minors Act -- that is ...
Planning for a child's education requires careful consideration of several factors, including asset ownership, tax implications (including FICA taxes) and financial aid eligibility. Two popular...
It is a more flexible extension of the Uniform Gifts to Minors Act (UGMA), and allows the gifts to be real estate, inheritances, and other property. [citation needed] The Act allows the donor of the gift to transfer title to a custodian who will manage and invest the property until the minor reaches a certain age. The age is generally 21, but ...
A custodial account is a financial account (such as a bank account, a trust fund or a brokerage account) set up for the benefit of a beneficiary, and administered by a responsible person, known as a legal guardian or custodian, who has a fiduciary obligation to the beneficiary.
Teaching children about money management early can be a powerful tool in setting them up for financial success. On a recent episode of the Women & Money Podcast, Suze Orman answered a question ...
LPL Financial Holdings Inc. (commonly referred to as LPL Financial) was founded in 1989 and is considered the largest independent broker-dealer in the United States. As of 2021 the company had more than 17,500 financial advisors, [4] over US$1 trillion in advisory and brokerage assets, [5] and generated approximately $10.3 billion in annual revenue for the 2023 fiscal year. [6]
The parent loses control of the account once the child becomes an adult. And unlike a 529 plan, UTMA or UGMA funds can be used for any purpose, meaning they aren’t earmarked exclusively for ...