Save for your child’s future with a Custodial Account!
Custodial Accounts are a convenient way to save for long-term goals (such as college tuition) or set money aside for the benefit of a minor child while limiting the child’s access to the account.
Custodial Accounts can be set up as a:
Under the New York Uniform Transfers to Minors Act (NYUTMA), an adult over age 18 can act as the custodian of an account for the benefit of a minor. By opening this type of account, the custodian will be giving the minor an irrevocable gift of the money that is deposited into the account. All money in the account belongs to the minor.
- 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 benefit of the minor.
- Only a custodian can withdraw from the account or close the account.
- The minor does not have any access to the account, and cannot make withdrawals, obtain information, or cash checks against the account.
- Once the child reaches the designated age (18 or 21), a custodian must turn control of the funds over to the child.
IMPORTANT NOTE: The establishment of 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.
For assistance opening an account or for more information, give us a call at (845) 452-7323 or visit any of our branch locations. We’ll be happy to help you!