An UTMA/UGMA custodial account is a way for your child to hold assets in his or her own name with you (or another individual) acting as custodian. Assets in the account can then be used to pay for college. All contributions to the account are irrevocable, and your child will gain control of the account when he or she turns 18 or 21 (depending on state rules). Earnings and capital gains generated by assets in the account are taxed to the child each year.
Under the kiddie tax rules, for children under age 19, and for full-time students under age 24 who don’t earn more than one-half of their support, the first $1,000 of earned income is tax free, the next $1,000 is taxed at the child’s rate, and anything over $2,000 is taxed at your rate.
Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. South State Bank and South State Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. Advisory Services offered through LPL Financial, a Registered Investment Advisor.
*Please consult your tax-advisor for tax related issues.
Not FDIC Insured
Not Bank Guaranteed
May Lose Value
Not Insured by any Federal Government Agency
Not a Bank Deposit
The services offered within this investment site are available exclusively through our U.S. registered representatives and are available for U.S. residents only. LPL Financial U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.