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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 79109  
Subject: Re: IRA choices for YOUNG investor ??? Date: 2/14/1998 10:26 AM
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<<"It was my impression that minors NEEDED a custodial account since they were NOT allowed to own securities in their own name. How could a 17 year old be listed as the owner of stock?"

Not according to Waterhouse. I filled out the forms with my daughter's name and signature. They could see her birthdate made her a minor, but they processed it as a regular IRA. My guess is that custodial accounts require some sort of UGMA or trust legal framework, both of which are incompatible with the IRA framework. Maybe TMF Pixy can help us out on this.>>

Normally, that's correct. However, within the IRA the shares are held by the custodian in trust for the account owner, in this case your daughter. Thus, her shares technically are not in her name but in the broker's street name. You are most probably listed as her "designated agent" authorized to contract for and make trades within the account.

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