GREENWOOD NAMED TO FAST COMPANY’S SECOND ANNUAL LIST OF “BRANDS THAT MATTER” LEARN MORE
A Uniform Gift to Minors Act (UGMA) account is a custodial account that protects/holds assets for minors. Note, once you put money in, it’s not coming out–so no dipping into the pot daddies. Once they’re grown or reach the age of maturity of your state, they get full access to the account and can spend it how they want.
So, how do the accounts work?
With these accounts you can invest in stocks, bonds and other securities until your child become legal and (hopefully) responsible enough to manage it on their own
Ready to sign up?
You can open an UGMA through a bank or brokerage
Because the assets in UGMAs belong to your kid, they’re counted as assets if they decide to apply for federal financial aid This is the tip of the iceberg but hopefully enough to get you started!
Found this helpful? Make sure you click the follow for more of Greenwood Daily.