Скачать или смотреть What Happens to Your Custodial Account When You Turn 18 (Complete Guide)

What happens to your custodial investment account when you turn 18? This complete guide covers everything: the legal transfer process, tax implications, common mistakes, and exactly what you should do.

⏱️ TIMESTAMPS:
0:00 - Intro
0:45 - What Legally Changes at 18
2:30 - Step-by-Step Transfer Process
5:00 - Tax Implications Explained
6:30 - 5 Common Mistakes to Avoid
8:00 - What You Should Actually Do
9:00 - Summary

📋 WHAT HAPPENS:

Legal Changes:
Custodianship terminates automatically (by law)
Parent loses all control
Account becomes 100% yours
You gain full legal authority
Usually at 18 (or 21 in some states like CA, NY)

Transfer Process:
Custodial Roth IRA → Regular Roth IRA
Custodial Brokerage → Individual Brokerage
Account stays at same firm
Investments stay invested (nothing sells)
You set up your own login

Tax Implications:
No taxes on the transfer itself
Only pay capital gains if you SELL
Kiddie Tax stops applying at 18
Cost basis carries over

🚫 COMMON MISTAKES:
1. Selling everything immediately (triggers taxes)
2. Not updating beneficiaries
3. Withdrawing from Roth IRA early
4. Not removing parent as joint owner
5. Stopping contributions

✅ WHAT TO DO:
Verify identity with brokerage
Set up your own secure login
Update beneficiaries immediately
Keep investments invested (don't sell)
Continue contributing regularly
Only withdraw if truly necessary

📊 ACCOUNT TYPES COVERED:
Custodial Roth IRA (retirement account)
Custodial Brokerage Account (UGMA/UTMA)
Both follow similar but slightly different processes

🔗 RESOURCES:
Checklist for Account Transfer: [link]
How to Update Beneficiaries: [link]
Managing Your Investments After 18: [link]

⚠️ STATE-SPECIFIC NOTE:
Most states: Age 18
California, New York (UTMA): Age 21
Check your account documents for "age of termination"

This is educational content only. Not legal or financial advice. For specific situations, consult with a financial advisor or tax professional.

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