savings

When to Transfer Ownership of a Custodial Account

Before your child turns 18, you should check with your broker about the account's age of majority and termination.

Question: My son is turning 18 this year. Do I need to contact my brokerage firm to transfer ownership of his custodial accounts to him? - M.L., Villanova, Pa.

Answer: The rules vary by state and account. There are two key ages: the age of majority (often 18) and the age of termination on the account (usually 21), says John Woerth, of Vanguard. When children reach the age of majority, the account can be transferred into their name only with custodian consent. Otherwise, they can remove the custodian from the account at the age of termination. Ask your brokerage firm what ages apply to your son’s accounts and the steps you need to take at each point.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
9 Great Growth ETFs for 2022 and Beyond
ETFs

9 Great Growth ETFs for 2022 and Beyond

These growth ETFs offer exposure to higher-risk, higher-reward stocks while lessening the risk of a single stock torpedoing your returns.
January 18, 2022
The 10 Best Closed-End Funds (CEFs) for 2022
CEFs

The 10 Best Closed-End Funds (CEFs) for 2022

These high-yielding CEFs won't just significantly boost your portfolio income. They'll also allow you to buy their underlying stocks and bonds at a di…
January 12, 2022

Recommended

Make a Plan for Your Parents' Care
Caregiving

Make a Plan for Your Parents' Care

The ideal time to begin talking with your parents is before they need care.
January 24, 2022
22 Products You’ll Waste Money Buying at Warehouse Clubs
Costco

22 Products You’ll Waste Money Buying at Warehouse Clubs

We talked to shopping experts to find out which products shoppers should steer clear of (and why) at warehouse clubs Costco, Sam’s Club and BJ’s.
January 22, 2022
TOD Accounts Versus Revocable Trusts – Which Is Better?
savings

TOD Accounts Versus Revocable Trusts – Which Is Better?

Both help you pass down assets while avoiding the time and expense of probate, but one comes with a lot more flexibility than the other.
December 2, 2021
Earn 7.12% With Series I Bonds
Basics

Earn 7.12% With Series I Bonds

A savings or money market deposit account is best for quick cash, but I bonds can fit into a longer-term savings plan.
November 29, 2021