The Trump Account is a custodial investment account for minors, not a savings account
The Trump Account is a brokerage account designed for children under 18, offered through Trump Media & Technology Group. It functions as a custodial investment account, meaning a parent or guardian controls it on the child's behalf until the child reaches the age of majority. The account lets minors own stocks, exchange-traded funds (ETFs), and other securities, with the parent making all trading decisions and managing the funds.
This is different from a regular savings account or money market account. You are not depositing money into a bank vault. Instead, you are buying pieces of publicly traded companies and investment funds. The account itself is held in the child's name, but legally the parent acts as custodian until the child turns 18 or 21, depending on your state's laws.
The account launched in 2024 as part of Trump Media's expansion into financial services. It is available to U.S. residents and requires a parent or legal guardian to open it and manage all transactions.
Key Takeaways
- A Trump Account is a custodial brokerage account where a parent controls investments on behalf of a minor child.
- The account holds stocks and ETFs in the child's name, but the parent makes all buying and selling decisions until the child reaches adulthood.
- Money deposited into the account is invested in securities, not held as cash in a bank account.
- The account is subject to federal tax rules for custodial accounts, meaning investment gains are taxed at the child's rate once they exceed certain thresholds.
- When the child reaches the age of majority, control of the account transfers to them automatically.
How a custodial account works in practice
When you open a Trump Account, you link it to your own identity and banking information. You then fund the account by transferring money from your bank. That money sits in the account until you decide to invest it—you choose which stocks or ETFs to buy on the child's behalf.
All trading decisions are yours. Your child cannot buy or sell securities without your permission. You receive statements showing what is held in the account, how much it is worth, and what gains or losses have occurred. If the investments grow in value, that growth belongs to the child. If they lose value, that loss also belongs to the child's account.
The account is registered in the child's name and Social Security number. This matters for taxes: when the child turns 18 or 21 (depending on your state), the account automatically becomes theirs to control. They can then buy, sell, or withdraw money without your permission.
Tax treatment of investment gains in a custodial account
Investment income in a custodial account is taxed at the child's tax rate, not yours. This is often lower than your own rate, which is one reason parents use these accounts. However, there are limits.
For 2024, the first $1,450 of investment income (dividends and capital gains combined) is tax-free if the child has no other income. The next $1,450 is taxed at the child's rate, which is typically 10 percent. Income above $2,900 may be taxed at your rate under the "kiddie tax" rules, depending on the child's age and your income.
You will receive a Form 1099 or similar tax document each year showing what income the account generated. You report this on the child's tax return if one is required. The rules are complex and vary by situation, so consulting a tax professional before opening the account is wise if you expect significant gains.
Differences between a Trump Account and a 529 education savings plan
A Trump Account is a general investment account with no restrictions on how the money is used. A 529 plan is a tax-advantaged account specifically for education expenses. The key differences matter if you are deciding which account to open.
| Feature | Trump Account | 529 Plan |
|---|---|---|
| Purpose | Any use—no restrictions | Education expenses only |
| Tax advantage | Child's tax rate on gains | Tax-free growth if used for education |
| Withdrawal rules | Withdraw anytime, for any reason | Penalty and taxes if withdrawn for non-education use |
| Control transfer | Automatic at age of majority | Parent retains control; can change beneficiary |
| Investment options | Stocks, ETFs, other securities | Varies by plan; often limited to mutual funds |
If your goal is to save for college, a 529 plan typically offers better tax treatment. If you want flexibility to use the money for anything—a car, a house down payment, or general wealth-building—a Trump Account gives you that without penalties.
What happens when the child turns 18 or 21
The age at which control transfers depends on your state. Most states use 18, but some use 21. When that birthday arrives, the account automatically becomes the child's property and they can control it without your permission.
You should prepare your child for this transition before it happens. They will inherit whatever is in the account—both gains and losses. If you have been investing aggressively and the market drops, they may receive less than you put in. If you have been conservative, they may receive steady growth. Either way, the account is theirs to manage, withdraw from, or leave alone.
Some parents use this as a teaching moment, discussing investment strategy and long-term thinking with their child before the transfer. Others straightforward let the account pass over and let the young adult decide what to do with it.
Fees and account requirements
Trump Media charges fees for maintaining and trading through the Trump Account, though the exact fee structure has varied since launch. You should review the current fee schedule on the Trump Media website or in the account documents before opening an account, as fees directly reduce your returns.
Common fees in custodial brokerage accounts include account maintenance fees, trading commissions, and advisory fees if you use a managed service. Some brokers waive fees for accounts above a certain balance or for frequent traders. Compare the Trump Account's fees to other custodial accounts offered by established brokers like Fidelity, Vanguard, or Charles Schwab before deciding.
You will also need to provide identification and proof of the child's identity when opening the account. The process is similar to opening any brokerage account, but with the added requirement that you prove you are the legal parent or guardian.
Frequently Asked Questions
Can my child access the money before turning 18?
No. You control the account until your child reaches the age of majority in your state. Your child cannot withdraw money or make trades without your permission. You can withdraw money yourself if you need it, but doing so removes it from the account and may have tax consequences.
What if I want to close the account before my child turns 18?
You can close a custodial account at any time. You will receive the current value of the investments, either as cash or transferred to another account. If the investments have gained value, you may owe taxes on those gains. Consult a tax professional before closing to understand the tax impact.
Is a Trump Account insured like a bank account?
No. Bank accounts are insured by the FDIC up to $250,000. Brokerage accounts are not bank accounts and are not FDIC-insured. They are protected by SIPC (Securities Investor Protection Corporation) up to $500,000 if the brokerage fails, but this does not protect you from investment losses. If the stocks or ETFs you own lose value, that loss is real.
Can I invest in Trump Media stock through the Trump Account?
Yes, you can buy any publicly traded stock through the account, including Trump Media stock. However, concentrating a child's account in a single company or sector is risky. Most financial advisors recommend diversifying across many companies and fund types to reduce risk.
What happens to the account if I die before my child turns 18?
The account becomes part of your estate and is handled according to your will or state law. You should name a successor custodian in your account documents so someone you trust can manage the account on your child's behalf if you die. Without a named successor, the court may appoint someone to manage it.