Savings Account

The baby now has a savings account. I'm sure for the first few years Baby Bob wouldn't notice if some of his presents on holidays were monies that were placed in an account for him. The account is a youth savings account. It has his name on it but he is restricted from accessing it until he is 18 years old. I THINK there are some tax benifits for those who give to this account as a gift. To be sure ask somebody who knows.

The Fine Print:
This account is a Uniform Transfer/Gifts to Minors Act (UTMA/UGMA) savings account. It is agreed that this account will be governed by the Uniform Transfer/Gifts to Minors Act of the state where the account is opened. All funds deposited in the account irrevocably become the property of the minor, but are to be managed for the minor's benefit by the custodian until the minor reaches the age of 18 or 21, depending on state law, at which time the custodian is responsible for distributing the funds to the minor.