Planning for Your Child’s Future
A convenient way to save for your child’s future. TEG Federal Credit Union offers these special savings accounts as an ideal way to save money that has been given to a minor as a gift. Custodial accounts help you maintain control of your child’s access while setting money aside for their benefit.
You can set it up in one of three ways:
How it Works:
- Parents or other interested persons can deposit money as a gift to the minor.
- The custodian has full power to use the money, when deemed necessary, for support, maintenance, education, and the benefit of the minor.
- Only a custodian can withdraw from the account or close the account.
- The minor cannot access the account and cannot make withdrawals, obtain information, or cash checks against it.
- Once the minor reaches the designated age (18 or 21), a custodian must turn control funds over to them.
Invest in Your Child’s Financial Education
Financially Literate Children Grow into Financially Successful Adults. Investing in your child’s financial education sets them up for success. You want the best for them, right? But here’s the thing – many of us overlook teaching our kids about how to manage their money. That’s where financial literacy comes in. Why not start with a custodial account? It’s a great way to introduce them to managing money from a young age.
When your family succeeds, we succeed. We are neighbors helping neighbors because we believe in TEG, where Together Everyone Grows.
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IMPORTANT NOTE: Establishing a custodial account may have legal and tax limitations, including income, gift, and estate tax consequences. You may want to consult your tax advisor before opening a custodial account. Under the New York Uniform Transfers to Minors Act (NYUTMA), an adult over age 18 can act as the custodian of an account to benefit a minor. By opening this type of account, the custodian will give the minor an irrevocable gift of the money deposited into the account. All money in the account belongs to the minor.
