Jan 13, 2026
FAQ: Custodial Navigation
In this article:
- Custodial account basics
- How do I open a Stash Custodial account?
- How do I add funds to a Stash Custodial account?
- How do I purchase an investment for a Stash Custodial account?
- How do I sell investments in a Stash Custodial account?
- How do I turn on or edit Auto-Stash contributions for a Stash Custodial account?
- How do I use money in a Custodial account for an expense that benefits the minor?
- How do I transfer the account once the owner reaches the age of majority?
- FAQ: Stash Custodial accounts
By Stash Team
Last updated: June 09, 2026
A Stash Custodial account lets an adult invest for a child through a UGMA/UTMA account. The money belongs to the child, the adult custodian manages it until the child reaches the age of majority in the state where the account was opened, and withdrawals must be for the child’s benefit.
That last part matters. A custodial account is not a side wallet for the adult. It is a long-term gift to the child. Stash’s view: use custodial investing with intention, diversify, invest consistently when you can, and keep records. You should not have to decode this stuff with no help. Guidance belongs in your pocket.
Custodial account basics
A Stash Kids Portfolio is a custodial UGMA/UTMA investment account. Money in a custodial account is the property of the minor. This type of account is a non-discretionary managed account.
Key things to know before you open one:
The child owns the assets. Contributions are generally considered irrevocable gifts to the minor.
The custodian controls the account temporarily. The adult custodian manages contributions, investments, sales, and eligible withdrawals until the minor reaches the applicable age of majority.
The account can be used for more than college. Unlike a 529 plan, UGMA/UTMA funds may be used for many expenses that benefit the child, not only qualified education expenses.
Taxes may apply. Investment income in a custodial account may be subject to the kiddie tax. For tax year 2026, the first $1,400 of a child’s unearned income is generally covered by the child’s standard deduction, the next $1,400 is generally taxed at the child’s rate, and unearned income above $2,800 may be taxed at the parent’s rate. Tax rules can change, so consider speaking with a tax professional.
Gift tax rules may matter for larger contributions. For 2026, the federal annual gift tax exclusion is $19,000 per recipient. Contributions above that amount do not automatically mean you owe gift tax, but they may require filing a gift tax return.
Financial aid may be affected. Custodial account assets are typically treated as the student’s assets on the FAFSA, which can affect aid calculations.
The Stash plan includes up to ten custodial accounts. A minor can have more than one custodial portfolio opened in their name. You do not have to be related to the minor to open a custodial account for them, but you will need the child’s name, date of birth, and Social Security number.
Minors who hold a green card or visa and are not U.S. citizens can receive money from a Custodial account if account requirements are met.
How do I open a Stash Custodial account?
Go to this link, log in, and select Get started.
Follow the on-screen prompts to complete account setup.
You can open a custodial account for any child under the age of majority in your state. Keep in mind that the age of majority is based on the laws of the state where the account was opened, not necessarily where the child later lives.
How do I add funds to a Stash Custodial account?
To make a one-time deposit:
Use this link to begin a transfer.
Enter the dollar amount you would like to transfer.
Select your desired source of funds as the From account.
Select the Custodial account as the To account.
Verify the transfer details and click Transfer to initiate the transfer.
Transfers made before 3:30 p.m. ET are generally available to invest using Portfolio Cash within minutes. Transfers made after that time generally process on the next available business day.
To set up recurring deposits, use this article to learn more about managing Auto-Stash settings.
How do I purchase an investment for a Stash Custodial account?
You can invest money in the custodial account once funds are available as Portfolio Cash. Portfolio Cash is the cash in the Custodial account that has not been invested yet.
In the app
Decide what investment you would like to purchase.
Tap into the investment and tap Invest.
Enter the amount you wish to invest.
Select your desired source of funds as the From account.
Select the Custodial account as the To account.
Verify the details and tap Invest to initiate the investment.
If you would like to make this a recurring investment, use this article to learn more about managing Auto-Stash settings.
On the web
Decide what investment you would like to purchase.
Click on the investment and click Invest.
Choose your desired source of funds for this investment.
Select your Custodial Account as the location for your investment.
Enter the amount you wish to invest and click Continue.
Verify the details and click Confirm to initiate the investment.
If you would like to make this a recurring investment, use this article to learn more about managing Auto-Stash settings.
How do I sell investments in a Stash Custodial account?
Select the My Stash tab.
Scroll to Accounts and select the Custodial account.
Scroll to Top Holdings and select View all investments.
Select the investment you would like to sell.
Tap Sell.
Enter the dollar amount that you would like to sell and follow the prompts to confirm the sale.
Repeat the process for each investment you wish to sell.
Most stock and ETF sales settle on the next business day under the T+1 settlement cycle. If you purchased the investment recently, funded the account recently, or have another account hold, there may be additional delays before funds are available to withdraw.
To transfer available funds after a sale, see the section below on using money from a Custodial account for an expense that benefits the minor.
How do I turn on or edit Auto-Stash contributions for a Stash Custodial account?
Use this link for detailed guidance on Auto-Stash. It walks you through how to set or edit your Auto-Stash amount and frequency.
How do I use money in a Custodial account for an expense that benefits the minor?
As the custodian, you may withdraw money from a custodial account only if the money is used for the minor’s benefit. You cannot take the money back for yourself or give it to someone else.
Examples of expenses that may benefit a child include:
Educational expenses, including school supplies or uniforms
Daycare or childcare costs
Activities or lessons, such as music classes, sports, tutoring, or swim lessons
Certain medical, dental, or therapy expenses for the child
Keep receipts and notes showing how the money was used. If you are not sure whether an expense qualifies, consider speaking with a financial advisor or tax professional. Rules can vary by state and situation.
Initiate a withdrawal
Link your external bank account if you have not already.
Before making a withdrawal from a Custodial account, you may need to sell investments so the account has available cash.
Once funds have settled, call us at 800-205-5164 from 8:00 a.m. to 8:00 p.m. ET Monday through Friday, or email support@stash.com to begin the process.
If you are looking to transfer the investments directly to another custodial UGMA/UTMA account with another broker, you will need to initiate an ACAT transfer from the other brokerage. Use this link for details about ACAT transfers from Stash to a different account.
How do I transfer the account once the owner reaches the age of majority?
When the minor reaches the age of majority, the money in the Custodial account becomes fully theirs. The account may be locked, and the custodian will no longer have access to or control over the funds.
The age of majority is determined by the laws of the state where the account was opened, which may be different from where the account owner lives now.
To complete the transfer:
The beneficiary of the custodial account must open a Stash account in their own name.
Download the form needed to make the transfer: Cash and Stock Journal Form.
Fill out the form as follows:
Date: Date you filled out the form.
Delivering Account No.: Your Custodial account number. Learn how to find your account number here.
Delivering Account Name/Title: Account owner name or title as it appears on your account statements or trade confirmations. Example: Child’s name Custodial or Child’s name UTMA.
Receiving Account No.: The child’s new personal brokerage account number. This must be their personal brokerage account. It cannot be a Smart Portfolio or IRA account.
Receiving Account Name/Title: The child’s name as it appears on their new Stash account.
Full Transfer of Cash & Securities?: Yes.
Reason For Transfer: Account owner reached age of majority.
Customer Authorization: Sign your name on the Customer Signature line.
Do not fill out any other fields on this form. Do not have the child sign the form. This does not need to be notarized.
Email the completed form with a message to support@stash.com. We will escalate it to our brokerage team, which will handle the transfer within seven business days.
Once the funds are transferred into the beneficiary’s account, they can continue using Stash or transfer the funds elsewhere.
FAQ: Stash Custodial accounts
Who owns the money in a Stash Custodial account?
The child owns the money and investments. The adult custodian manages the account until the child reaches the applicable age of majority.
Can I take money out of a custodial account?
Yes, but only for expenses that benefit the minor. You cannot withdraw the money for your personal use. Keep records showing how the funds were used.
Can a grandparent, aunt, uncle, or family friend open a custodial account?
Yes. You do not have to be the child’s parent or relative to open a Stash Custodial account, but you must have the required information, including the child’s name, date of birth, and Social Security number.
Is a custodial account the same as a 529 plan?
No. A 529 plan is designed for education expenses and has specific tax rules. A UGMA/UTMA custodial account is more flexible, but it does not have the same education-focused tax benefits and may affect financial aid differently.
Are there contribution limits for a UGMA/UTMA custodial account?
UGMA/UTMA rules do not set a standard annual contribution limit the way IRAs do. But gift tax rules still apply. For 2026, the federal annual gift tax exclusion is $19,000 per recipient.
Does a custodial account have taxes?
It can. Dividends, interest, and realized capital gains may be taxable. The kiddie tax may apply when a child has unearned income above the annual threshold.
What happens when the child turns 18 or 21?
It depends on the state where the account was opened. Once the child reaches that state’s age of majority, the assets must be transferred to them, and the custodian’s control ends.
Can the child be a non-U.S. citizen?
A minor who holds a green card or visa and is not a U.S. citizen may receive money from a Custodial account if account requirements are met.
Can I close a custodial account?
A custodian may sell investments and withdraw funds only for the minor’s benefit, or transfer the assets to another eligible custodial account. Because the assets belong to the child, the custodian cannot close the account and keep the money.
Written by
Team Stash
We want to turn money into a source of hope and opportunity. We teach people how to build good habits, save more and make it easy and affordable to get started investing. So far, we’ve helped over 6 million people create a more secure financial future with our expert advice and award winning investing app.
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