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
7 Best Commodity Stocks to Play the Coming Boom
commodities

7 Best Commodity Stocks to Play the Coming Boom

These seven commodity stocks are poised to take advantage of a unique confluence of events. Just mind the volatility.
September 8, 2021
Stock Market Holidays in 2021
Markets

Stock Market Holidays in 2021

Is the stock market open today? Take a look at which days the NYSE, Nasdaq and bond markets take off in 2021.
September 2, 2021

Recommended

How to Calculate Your Net Worth
savings

How to Calculate Your Net Worth

Run an inventory of your assets and liabilities to find out how much you're worth.
September 20, 2021
Complain and Be Heard
Smart Buying

Complain and Be Heard

Getting our money back for the extended warranty and gap insurance we didn't want took patience and persistence.
August 31, 2021
10 Things to Know About Hurricane Insurance Claims
Becoming a Homeowner

10 Things to Know About Hurricane Insurance Claims

Know what's covered, what isn't, and how to make the most of your policy if you need to file a claim.
August 30, 2021
13 Reasons to Shop at Walmart (Even If You Hate Walmart)
spending

13 Reasons to Shop at Walmart (Even If You Hate Walmart)

If you haven't shopped at the world's largest retailer in some time, here's some of what you've been missing.
August 4, 2021