Established under the New York State Uniform Gift to Minors Act, a VCCFCU Custodial Account is opened in minor’s name as a Regular Shares or Certificate Account. One custodian and one beneficiary is allowed per account. A Custodial Account is irrevocable. Account Dividends are reported to IRS under minor’s social security number Periodic Statement of Account (frequency of statement determined by type of account opened.) Deposit Insurance to $250,000 by NCUA.
You can benefit from a Custodial Account since they protect the interest of the minor. The Custodian may use funds for support, education or maintenance of the minor. Custodial Accounts allow provisions for naming successor custodian in the event the custodian dies before beneficiary attains legal age of 21 (18 years old in State of New York).