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Uniform Transfers to Minors Act Accounts (UTMA)

The UTMA Account is established for a child who is still a minor. A Custodian of legal age may set up a UTMA Account as an irrevocable gift to a minor. UTMA Accounts are also known as Custodial Accounts.
The UTMA Account is a great way to give money to children for their future because children can't have access to that money until they reach the age of majority. The age of majority is the age a minor becomes a legal adult. It varies by state and typically occurs on the 18th or 21st birthday. By that age, they should be more mature and better equipped to responsibly handle their finances. It's a popular choice for grandparents providing for the future of their grandchildren.
The funds in the account are controlled by the Custodian, but owned by the minor. At the age of majority, with the Custodian's authorization, the child is entitled to all the funds in the account.
  • Any adult may open an account as a Custodian for a minor as long as the Custodian or minor is eligible for DCU Membership.
  • A UTMA Account is opened using the minor's Social Security Number.
  • A DCU Check Card or DCU ATM Card can be issued in the Custodian's name only.
  • Only the Custodian may transact business on the account and only for the benefit of the minor. The Internal Revenue Service (IRS) may require proof of this.
  • Loans are not available on a UTMA Account.
  • Funds cannot be used as collateral for a loan.
  • A Successor Custodian must be named when the account is opened. If the Custodian is unable to act as Custodian, resigns, dies, or becomes legally incapacitated, the Successor Custodian assumes responsibilities as Custodian.
This account is federally insured separately from the Custodian's and beneficiary's individual accounts, up to $250,000. All accounts created by the same Custodian for the same beneficiary are added together and insured for a maximum of $250,000.
DCU cannot provide legal, tax, or estate planning advice. We suggest you discuss your particular situation with a tax consultant or advisor.
Use our Savings Calculators to help you determine the savings plan to meet your goals.
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Digital Federal Credit Union
Digital Federal Credit Union
220 Donald Lynch Boulevard
PO Box 9130
Marlborough, MA 01752-9130
508.263.6700 • 800.328.8797
 DCU is an Equal Housing Lender    Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. National Credit Union Administration, a U.S. Government Agency. Select for more information.

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