Custodial Accounts: Custodial Stock & Investment Accounts: Charles Schwab

Open an account with $100.
Account maintenance fees: None.
Contribution limit: No limit.
Who's it for? Anyone who wants to make an irrevocable gift to a minor; there are no income or age restrictions and the money does not have to be used for education expenses. However, the money must be used for the benefit of the minor, and the account must be transferred to the minor when he or she reaches 18 or 21 (or up to 25), depending on the state.

Open the account that lets you:

Make irrevocable gifts to your beneficiary.
Manage the assets of the account until you transfer the account to the beneficiary.
First $950 of earnings are taxed-free and, next $950 of earnings are taxed at the child’s rate.
Make withdrawals at any time and for any purpose for the benefit of the beneficiary.
No gift tax incurred for contributions up to $13,000 per year ($26,000 if married, filing jointly).

Please note:

All assets are held in the child’s name.
20% of the assets will be considered when applying for financial aid.

Because it's a Schwab account, you can:

Enjoy all the benefits of a Schwab One® brokerage account.
Decide how contributions are invested— use our industry-recognized research to choose stocks; bonds; CDs; no-load, no-transaction-fee mutual funds and more; or select a single portfolio solution.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.

Charles Schwab & Co., Inc. receives remuneration from fund companies participating in the Mutual Fund OneSource® service. Schwab’s short-term redemption fee of $49.95 will be charged on redemptions of funds purchased through Schwab’s Mutual Fund OneSource service (and certain other funds with no transaction fees) and held for 90 days or less. For each of these trade orders placed through a broker, a $25 service charge applies. Funds are also subject to management fees and expenses.

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