Custodial accounts are used to protect the property of minor children.

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Custodial accounts, also known as Uniform Transfer to Minors Act (UTMA) accounts or Uniform Gifts to Minors Act (UGMA) accounts, are established to hold and manage assets for the benefit of a minor child until they reach the age of majority (18 or 21 depending on the state). They are used to protect these assets and ensure they are managed responsibly until the child is old enough to take over ownership and control.

Custodial Accounts Are Used to Protect the Property of Minor