Comments on: Scared Your Child Will Blow Their Savings? Consider a Custodial Account

By: Rita

Rita — Sun, 30 Jun 2019 07:26:25 +0000

My mother-in-law opened savings accounts for my children. She put the children’s nams S.S.#’s on the accounts, and she was the custodian. She closed them and kept the money. The bank is no help in the situation. They said there are no laws against what she has done to my children.

By: Paula Marth

Paula Marth — Sun, 05 May 2019 23:27:01 +0000

Can the age of the custodial account be extended. I’m in washington state.

By: Jeff Rose

Jeff Rose — Sun, 04 Feb 2018 23:09:44 +0000

In reply to Elizabeth. Hi Elizabeth - I think it is. As custodian, the funds must be used for the child. If not, it can be a criminal act. You should consult with an attorney.

By: Elizabeth

Elizabeth — Sun, 28 Jan 2018 19:41:07 +0000

Looking for information. Exxon 100 shares purchased for infant that has now reached matured age of 21 finds out that the divorced parent named as custodian and who did not have full custody of child has utilized all funds for his personal debt. Funds that the child thought he would have for his college education. No funds were ever used for benefit of child….is this a crime?

By: meghan

meghan — Tue, 25 Aug 2015 20:11:06 +0000

My children’s father, and my ex- husband, recently passed away. His old employers put together a 529 plan in Nevada, and there is a substantial amount of money in it. I believe that my ex brother n law is in charge of it, and I have no access or knowledge of anything to do with it. I have tried to reach out and find out anything about it, but was told I do not have any privileges to know anything. I have 3 kids, with no life insurance. As I need to plan their future, how do I find out about the 529 plan ? Also, I have officially become the executor of my ex- husband’s estate.

By: Nikita rodskiy

Nikita rodskiy — Wed, 01 May 2013 05:22:44 +0000

I think custodian account is a great opportunity for parents to help children manage their personal finance and save up for the education!
Another good idea might be to complement the custodian account with an automatic savings program so that children could contribute part of their personal money towards future financial goals. In that case parents may reward children for example by matching their savings..
Children’s involvement into building up their custodian account will increase their financial responsibility.

By: Anton Ivanov

Anton Ivanov — Tue, 30 Apr 2013 17:31:01 +0000

Jeff, I am a little unsure of what is the exact benefit of creating a custodial account, other than a small tax benefit. It seems that you can just as well gift your child money at whatever point in their lives you see fit, bypassing the hassle of creating a separate custodial account altogether. Perhaps I’m missing something here…

By: Mike@WeOnlyDoThisOnce

Mike@WeOnlyDoThisOnce — Tue, 30 Apr 2013 03:04:37 +0000

Seems like a great alternative to giving them free rein all at once. I wonder what potential downsides might be, but I doubt they outweigh the pros!