Your children may still be in diapers, but they don’t need suits to become investors today. You can start investing in your children’s future and begin building a legacy by turning to the Uniform Gifts to Minors Act (UGMA).
The UGMA allows you to open a custodial brokerage account that holds assets such as stocks, bonds, and cash for the benefit of a minor. The minor is technically the legal owner of the account. But as a custodian, you manage the account and the assets it holds. Once the child reaches the age of majority, he or she is allowed to manage the account.
