A custodial account is an account managed by a parent or guardian on behalf of a child. Keep in mind that the money belongs irrevocably to the child, so if you're managing a custodial account for your child, when he or she turns 18, 21 or 25 (depending on the state rules governing the account) her or she can use the money for anything he or she wants—a new car or a European vacation, for instance.   Custodial accounts offer minor tax advantages, and have no restrictions on how the money can be spent. If you want to set aside money for expenses that aren't covered by an ESA or 529 plans—sorority dues or private voice lessons, for example—a custodial account may be just the thing.

To find out more about UGMA and UTMA accounts services offered through RFG, contact us at (818) 330-9610 or email This email address is being protected from spambots. You need JavaScript enabled to view it.