ACCOUNTS TO HELP YOU SAVE FOR KIDS
The Uniform Transfers to Minors Act (UTMA) custodial account allows an adult to establish and manage assets for a minor child—including stocks and securities. Once the custodial savings account is established on behalf of the minor child, the assets are considered irrevocable gifts and must be transferred to the former minor upon reaching the state’s Age of Termination (generally age 21 but some states are age 18).
Once named, the minor child may not be changed on the account.
Why it may be right for you
UTMA accounts with Thrivent Mutual Funds offer low minimum contributions to our sophisticated yet simple funds, so it’s easy to get started. And by setting up an automatic investment plan, you can keep giving throughout the year.
Whereas other custodial accounts can only be used for educational expenses, assets established through UTMA can be used for the minor child's benefit in a variety of ways.