Estate Planning: Setting Up Custodial Accounts for Your Grandkids

Setting up a custodial account can be a good way to provide funds for a grandchild without giving them full access to the money until they reach a certain age. Here are the basics of how to set up a custodial account for your grandchild.

Custodial Account

A custodial account is a type of account that is offered by many different financial institutions that will allow you to give money to a minor. Your grandchild is not going to be able to spend the money until they reach a certain age. You will be able to put their parent in charge of managing the account for them if you want.

Starting the Account

There are a number of different financial institutions that you could work with to set up this type of account. Most of the time, your local bank or financial brokerage will be able to accommodate you. They will have some basic forms that you will have to fill out. You will need the information about your grandchild as well as who the manager of the account is going to be. You will then complete the paperwork and fund the account. At that point, you will be able to continue making deposits into the account as you see fit.

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