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Financial Planning / Tax Strategies


Subject:  Re: Brokerage account for child Date:  11/22/2020  10:37 PM
Author:  JeanDavid Number:  131353 of 132662

If the money belongs to the child, then the account should be in the child's name. Your cousin will need to open a UTMA or UGMA (varies by state) in the child's name with herself as the trustee since the child is a minor. Pretty much any brokerage will have these accounts, but there may be a higher minimum than that $500, so he might have to save up a bit.

I opened a UGMA account for a baby friend of mine (she was a little less than a year old at the tima) at Ameritrade. My initial deposit into that account was betweem $800 and $900. The did not have any problem with that, and did not charge any fees, other than their usual commissions. Perhaps they took into account that I had a margin account, an IRA, and a Roth-IRA with them. It certainly was no secret.

It does not hurt to ask.
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