With a custodial account, established under the Louisiana Uniform Transfers to Minors Act, you can start saving for a child’s future, today.
UTMA: The Trust Fund Alternative. CSE offers accounts protected by the Louisiana Uniform Transfers to Minors Act (UTMA). UTMA accounts can help you avoid some of the expense and complications associated with establishing a formal trust. While a custodian must be designated to protect the account while the youth is underage, the funds become an irrevocable gift when the recipient reaches the legal age of 18. Custodian is responsible for closing the account and distributing the funds.
Under the Louisiana Uniform Transfers to Minor Act, the funds in the account are owned by the child who has unconditional use of the account when he or she reaches the age of majority. Before that time, the account may be accessed only by the custodian, and the funds must be used for the benefit of the child. CSE Federal Credit Union, however, has no duty or agreement whatsoever to monitor or assure that the acts of the custodian are for the child’s benefit. For this type of account, the child’s SSN/TIN is used for the Backup Withholding Certification.
Minor cannot withdraw funds without custodian
Earns compounded dividends and paid monthly
Only $5 required to open