UGMA/UTMA Custodial Account Calculator

Unearned income (dividends, capital gains) above $2,500 for children under 19 (or 24 if full-time students) is taxed at the parents' marginal rate, not the child's.

UGMA/UTMA accounts transfer to the beneficiary at age 18 or 21 (varies by state). The child receives full, unrestricted control of the assets.

Custodial accounts are considered the student's asset and assessed at 20% in the FAFSA formula, versus 5.64% for parent assets, which can significantly reduce aid eligibility.