The basic steps to open a child savings account

Opening a UTMA or UGMA account (the formal names for Trump accounts) involves three main steps: choosing a financial institution, gathering documents, and completing the account paperwork. Most banks and brokerages can open these accounts, though not all offer them, so you may need to call ahead or check their website first.

The process itself is straightforward and usually takes less than an hour if you do it in person, or a few days if you do it online or by mail. You will need your own identification, the child's Social Security number, and basic information about both of you. Once the account is open, you can deposit money when ready.

The account is held in the child's name but managed by you as the custodian until they reach the age of majority — either 18 or 21, depending on your state and which type of account you choose.

Key Takeaways

  • You need the child's Social Security number, your identification, and your Social Security number to open the account.
  • UTMA and UGMA accounts are available at most banks, credit unions, and investment brokerages, though you should confirm before visiting.
  • Your state law determines whether the account transfers to the child at age 18 or 21.
  • The account is in the child's name for tax purposes, which may affect their tax filing later.

What documents you need to bring or provide

You will need your government-issued photo ID (a driver's license or passport) and your Social Security number. The financial institution will verify your identity using these. You will also need the child's full legal name, date of birth, and Social Security number.

If you are opening the account in person at a bank branch, bring these documents with you. If you are opening it online or by mail, you may be asked to upload a photo of your ID or provide additional verification. Some institutions ask for proof of your address, such as a recent utility bill or bank statement, though many no longer require this.

If you are not the child's parent or legal guardian, you may need to provide documentation of your relationship to the child or proof of guardianship. Call the institution ahead of time to ask what they require in your specific situation.

Choosing between UTMA and UGMA accounts

UTMA stands for Uniform Transfers to Minors Act, and UGMA stands for Uniform Gifts to Minors Act. The main difference is what you can put into the account. UTMA accounts accept money, securities (stocks and bonds), real estate, and other property. UGMA accounts accept only money and securities.

Most people use UTMA accounts because they are more flexible. However, not every state offers both — some states have moved entirely to UTMA. When you contact a financial institution, ask which type they offer in your state. The institution will guide you toward the right choice.

The other choice you will make is the age at which the account transfers to the child. Most states allow you to choose between 18 and 21. At that age, the child gains full control of the money and can withdraw it for any reason. Think about which age makes sense for your situation before you open the account, because changing it later is difficult or impossible.

Where to open a Trump account

You can open a UTMA or UGMA account at most banks, credit unions, and investment brokerages. Call or visit the website of any institution where you already have an account — they often make it easier to open a second account with them. If you do not have an existing relationship, any bank or credit union in your area will likely offer these accounts.

Banks and credit unions typically offer accounts that hold cash and CDs (certificates of deposit). Investment brokerages offer accounts that hold stocks, bonds, and mutual funds, which may grow faster but carry more risk. Decide what you want to invest in before you choose where to open the account, because different institutions specialize in different products.

Some online banks and brokerages offer these accounts as well. The process is usually the same — you fill out an online form, upload your ID, and receive confirmation within a few business days. Online institutions often have lower fees than brick-and-mortar banks.

What happens after you open the account

Once the account is open, you will receive account statements showing the child's name, the account number, and the custodian (you). You can deposit money by transferring it from your own bank account, mailing a check, or depositing cash in person if it is a bank account.

The money in the account belongs to the child for tax purposes, even though you control it. This means the child may need to file their own tax return if the account earns interest or investment income above a certain threshold. The financial institution will send you tax forms (usually a 1099) at the end of the year if income was earned.

You can withdraw money from the account for the child's benefit — for education, medical care, or other needs. However, you cannot withdraw money for your own use. When the child reaches the age you chose (18 or 21), they gain full legal control of the account and can withdraw money for any reason.

Common mistakes to avoid when setting up

The most common mistake is not checking your state's rules before opening the account. Each state has slightly different laws about UTMA and UGMA accounts, including the age at which the account transfers and what types of property are allowed. A few minutes on your state's banking or attorney general website can save you confusion later.

Another mistake is opening the account in the wrong name. The account must be in the child's name, not yours, even though you control it. If you accidentally open it in your own name, the money will be treated as yours for tax and legal purposes, which defeats the purpose of the account.

A third mistake is not understanding the tax implications. Money in the account is the child's income for tax purposes, so it may affect their tax filing or your ability to claim them as a dependent. Talk to a tax professional or read your institution's materials about how the account affects taxes before you deposit large amounts.

Frequently Asked Questions

Can I open a Trump account online?

Yes, many banks and brokerages allow you to open UTMA and UGMA accounts online. You will upload a photo of your ID and provide the child's Social Security number. The process usually takes a few business days. Some institutions still require you to visit in person or mail in documents, so check with your chosen institution first.

What if the child does not have a Social Security number yet?

You will need to obtain a Social Security number before opening the account. You can explore for one at your local Social Security office or online at ssa.gov. The process takes a few weeks. Some institutions may allow you to open the account and add the number later, but most require it upfront.

Can I change my mind about the age the account transfers to the child?

In most states, no — the age is set when you open the account and cannot be changed. A few states allow changes, but it is rare. Choose the age carefully before opening the account. If you need to change it, contact the financial institution to ask whether your state allows it.

Do I need to be the child's parent to open a Trump account?

No. Grandparents, aunts, uncles, or other relatives can open UTMA and UGMA accounts for a child. You do not need to be a legal guardian, though some institutions may ask for proof of your relationship to the child. Call ahead to ask what documentation they need.

What fees do Trump accounts have?

Fees vary by institution and account type. Some banks charge no monthly fee for UTMA accounts, while others charge a small annual fee. Investment brokerages may charge trading fees or account maintenance fees. Ask about all fees before you open the account so there are no surprises.