Series 51: Uniform Gifts To Minors Act (UGMA) Accounts

Uniform Gifts to Minors Act (UGMA) Accounts

These are custodian accounts where an adult opens and manages the account for a minor. There can be only one custodian and one minor. The minor and custodian do not need to be related, but the custodian must be an adult. The minor is the legal owner of the account and its assets; the custodian is responsible for managing the account. The account is opened with the minor’s Social Security number.

Custodians have third-party trading authorization allowing them to make trades in the accounts. Because minors are not old enough to make trades, they cannot trade