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UTMA Accounts

A great way to give money to children for their future

  • Features
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Uniform Transfer to Minors Act Accounts

  • Offers a legal means to give money to a minor
  • You maintain control until minor reaches legal age
  • Any type of DCU savings or checking account may be used
  • Federally insured to $250,000 per beneficiary by NCUA

Uniform Transfer to Minors Act Accounts

  • Offers a legal means to give money to a minor – The UTMA Account is established for a child who is still a minor (under age 18). 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.

    A 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, which is that age at which they become a legal adult. That age 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.

  • You maintain control until minor reaches legal age – 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 of the funds in the account.
  • Any type of DCU savings or checking account may be used
  • Federally insured to $250,000 per beneficiary by NCUA – 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.

More information about NCUA insurance.

More information about UTMA Accounts at DCU

  • 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 Debit 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.

DCU cannot provide legal, tax, or estate planning advice. We suggest you discuss your particular situation with a tax consultant or advisor.

Easy Ways To Open a UTMA Account

  1. By Mail– Fill out a Custodial Account Application to establish a new UTMA account along with DCU membership
  2. Visit a DCU Branch
    A Member Service Representative will assist you and be able to answer all your questions.