Custodial Minor Accounts (UTMA)

A custodial UTMA (Uniform Transfers to Minors Act) account is an account set up for a child, where the funds legally belong to the child but are managed by an adult (called a custodian).

The custodian oversees the account until the child reaches the age set by state law. In Maryland, the age of majority is 21.

Read the Uniform Transfers to Minors Act on the Social Security Administration website.

A youth account at Freedom is jointly-owned by a parent or guardian and a minor.

Unlike a UTMA account, a youth account does not have the same legal restrictions and generally allows for more flexibility in how the account is used and managed.

Freedom offers both youth accounts and custodial UTMA accounts, which are designed for different needs.

• UTMA/Custodial Minor Accounts: The money belongs to the child and is managed by a custodian until they reach adulthood.
  • Must be opened at a branch, minor does not need to be present
• Youth Accounts: Typically jointly-owned by the youth and a parent or guardian and offer more flexibility in access and use.
  • May be opened online, by phone, or in person at a branch with the minor present

Because UTMA accounts are legally owned by the child, there are certain rules around how the account can be used.

For example, transfers and withdrawals are limited to help ensure the funds are used for the benefit of the child, and only the custodian is authorized to make transactions until the account is formally changed. Transfers and withdrawals cannot be performed via online/mobile banking.

A UTMA structure impacts how funds can be accessed or transferred in Online/Mobile Banking.

Additionally, during our recent system transition, some AFFCU accounts were temporarily placed into structures that included Online Banking restrictions while we worked to align them with their original setup. These accounts have been reviewed and updated to align with how they were originally structured. If any temporary restrictions were applied, they have been removed or corrected.

In most cases, no action is needed.

If your account requires any updates or if you’d like to explore different account options, we’re here to help.

If you would like to link a minor’s account in Online Banking, please:

📞 Call us at 800-440-4120
🏦 Or visit any Freedom branch to speak with a team member

Regardless of the account structure (UTMA or Youth Account), you can conveniently view the minor’s account with a single sign-on to your Online Banking. Please keep in mind that limitations exist for UTMA structured custodial minor accounts.

In Maryland, UTMA accounts generally reach the age of majority at 21.

At that point, the account can be transitioned out of its custodial structure. Until that change is made, the custodian remains the authorized party on the account.

If you’d like to make a change, our team is happy to guide the custodian through that process.

Yes. Depending on your needs, you may be able to transition your account to a different structure.

Our team can walk you through your options and help you decide what works best for your situation.

We’re here to help.

📞 Call us at 800-440-4120
🏦 Or visit any Freedom branch to speak with a team member