How to Set up a UTMA
- 1). Obtain the Social Security number of the child in question. This is a legal requirement to open a UTMA account.
- 2). Determine whom you prefer to name as custodian on the UTMA account. This person can be anyone, but should be trustworthy, financially savvy and responsible.
- 3). Shop for UTMA account providers. Start by investigating options at your personal bank, life insurance company or investment company. Consult with your financial planner, who may do the legwork for you. Get advice from other parents in clubs and associations you attend.
- 4). Review the detail of the UTMA account provided by the investment firm you pick. This includes how the funds are invested and the age at which the minor will have legal access to the money (determined by the state, not the bank; however; the bank will inform you of the guidelines it adheres to).
- 5). Complete the necessary paperwork and submit it to your UTMA account associate. This includes designating how funds are to be transferred into the account, the Social Security number of the child and the name of the custodian that will manage the money on behalf of the minor (in your absence).