Custodial Accounts

We're here to help you create custodial accounts for minors, estates or other needs. We're experts in this area and proud to serve families in Delaware, Maryland and beyond.

We provide the guidance you need

Estate Accounts are generally opened by an executor to settle the estate of the decedent. The custodian/executor must apply for a Tax ID Number for the estate and provide these documents:

  • Grant of Probate (for an executor); or
  • Grant Letter of Administration (for an administrator appointed where there is no will).

Tidemark FCU has prepared an information packet to assist you in handling a decedent's estate. To request a copy, please visit a branch, call us at 302-629-0100, or use the contact form. We will be happy to assist you in any way we can.

For tax and other reasons, parents, grandparents and others want to transfer ownership of cash and other financial assets to children who are too young to handle such assets. Often, this is done through a trust, but the Uniform Transfers to Minors Act (or Uniform Gifts to Minors Act) provides an alternative that may be simpler, cheaper and faster than a trust.

We'll help you with all the details of setting up an UTMA account.

Funds held in a custodial account are owned by the child as soon as the funds are transferred to the account, even though the child can't control the assets until later. As a result, keep these points in mind:

  • A gift is legally complete when cash or other property is transferred to a custodial account, not when the account terminates. The contributor is not allowed to change his or her mind and take the property back.
  • Income generated by assets in the account is the child's income.

The account terminates when the child reaches a specified age. The age depends on the state's law and can range from 18 to 25. In some states, the custodian can choose to designate a different age than the one that automatically applies, but the law will impose a limit on the age the custodian can choose. In Delaware, the specified age is 18; however, the custodian can increase this up to 21.

Other accounts may or may not require legal documents, depending on the circumstances. If the custodian intends to deposit checks into the account made out to the principal, then we will need to ascertain that individual’s legal authority to do so.