Age of majority

By Stash Team

Last updated June 10, 2026

The age of majority is the age when a minor legally becomes an adult. For a custodial account, that date matters because it is when control of the account must transfer from the custodian to the person the account was opened for.

In plain English: the adult is the account’s caretaker for a while. The money belongs to the child the whole time. When the child reaches the applicable age of majority, the caretaker role ends and the account is transferred to the now-adult beneficiary.

What “age of majority” means for a custodial account

A custodial account is typically opened by an adult for a minor under state UGMA or UTMA rules. The custodian can choose investments and use account assets, but only for the minor’s benefit. The account is not the custodian’s personal money.

Once the minor reaches the age of majority that applies to the account:

• The beneficiary becomes entitled to control the assets.

• The custodian can no longer direct how the money is invested or spent.

• The assets are generally transferred into an account in the beneficiary’s name.

This can feel like a big handoff. That is the point. Custodial accounts are designed to help adults invest for a child’s future, not keep control forever.

Age of majority vs. transfer age: why the state matters

For everyday legal purposes, many states treat 18 as adulthood. But custodial accounts can follow separate state rules, and the transfer age is often 18 or 21 depending on the state, the account type, and the account documents.

At Stash, the applicable age is based on the custodian’s state listed for the custodial account. Because state laws can change and account details matter, confirm the transfer age before starting the process.

Age of majority by state or territory for Stash custodial accounts

What happens when the minor reaches the age of majority

When the beneficiary reaches the applicable age, the next step is not automatic in every case. The custodian should contact Stash to start an asset transfer to the beneficiary.

Here is the usual process:

1. Confirm the applicable age of majority for the custodial account.

2. Contact Stash by phone or email and say you want to initiate an asset transfer to the beneficiary.

3. Stash will provide the required transfer form.

4. Complete the form and have it notarized.

5. Submit the form so Stash can process the transfer.

A simple example: say a parent opened a custodial account for a child in New York. New York is listed as age 21 for Stash custodial accounts. When the beneficiary turns 21, the parent contacts Stash, completes the notarized transfer paperwork, and the assets move into the beneficiary’s control.

What the new adult should think about next

Getting control of a custodial account is a financial milestone. It can also be a lot to take in at 18 or 21.

The smartest first move is usually not to rush. The new account owner may want to understand:

• What investments are in the account

• How much risk they are taking

• Whether the portfolio is diversified

• Any tax forms or tax consequences connected to selling investments

• How the account fits with school, housing, emergency savings, and long-term goals

Stash’s point of view is simple: investing should not be a secret language reserved for people with wealth, family connections, or a private advisor. Good guidance should be available early, in plain English, right from your phone. Long-term investing, diversification, and consistency matter more than hype or hot-stock chasing.

Want more information on custodial accounts, including how the transfer of assets works? Check out this article on Stash Learn.