UTMA Custodial Account

UTMA custodial savings accounts are established under the Uniform Transfers to Minors Act for the benefit of a minor child and managed by a parent or another designated custodian until the child reaches statutory age (usually age 18 or 21, depending on the state). 


  • Funds must be used for the benefit of the child (not limited to education)
  • After the account is established, anyone can make contributions
  • Less expensive than setting up a trust
  • Donors can gift securities that have gained in value or cash


  • Once the child reaches statutory age (usually age 21), the account terminates and
    he or she can use the funds as they wish
  • Gifts made to the account are irrevocable
  • Funds are not transferable to another beneficiary
  • Considered student assets for federal financial aid purposes
  • Income subject to “kiddie tax” – parent responsible for making sure a tax return is filed on the child’s behalf (see your tax advisor)


Income Limits
  • No Limits
Annual Contribution Limits
  • No limits
  • Contribute up to $14,000 per child (single filers), $28,000 per child (joint filers)1
Tax Considerations
  • The first $850 of earnings each year are tax-free for children under 18. Income earned is subject to federal and state taxes
Compare Education Accounts

Interested in learning more?


  1. Higher contributions will be subject to federal gift tax regulations.
  • To send an email that contains confidential information, please visit the Secure Message Center where there are additional instructions about whether to use Secure Email or Online Banking messaging.
  • The information provided on this website is not meant as a recommendation or endorsement of any specific security or strategy. An individual’s situation can vary; therefore the information provided above should be relied upon only when coordinated with individual professional advice.
  • Mutual funds, annuities, and other investment products:
    Not FDIC-insured May lose value No bank guarantee
  • Commerce Brokerage Services, Inc., Member FINRA/SIPC, is a wholly owned subsidiary of Commerce Bank. This site is not intended for use by, or to provide any information to, investors in any state where Commerce Brokerage Services, Inc. is not registered or in any jurisdiction outside the United States of America where such use would be prohibited or otherwise regulated. Nothing on this web site shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.