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Custodial Accounts

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A Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) account is established by an adult custodian on behalf of a minor. The minor child is the beneficiary of the investment account.

A custodial account is suitable for an investor who:

  • Wants to establish an investment account for his or her child (or other minor) and wants the investment "gift" to automatically transfer into the minor's possession at the age of majority
  • Is willing to take on the responsibility as custodian of the account (or appoint a custodian) and manage the administration of the account and its investments
  • Understands that the account is set up as a gift that cannot be taken back

A UTMA account is similar to a UGMA account except that transfer of assets in the account may be delayed by the custodian until the minor reaches the age of 21 (per Washington State Law, age of 25 in some other states).

Like other accounts, custodial accounts are subject to the minimums of any particular fund you may choose. For Amana Mutual Funds, the minimum investments are $250 for Investor Shares and $100,000 for Institutional Shares. For Sextant Funds and Idaho Tax-Exempt Fund, the minimum investment is $1,000.

Saturna Brokerage Services ("SBS") also offers custodial brokerage accounts, allowing you to buy stocks, bonds, non-affiliated mutual funds, and other securities. Transactions in SBS accounts are subject to the SBS commission schedule.

Check out the background of Saturna Brokerage Services, Inc. or any firm or investment professional on FINRA's BrokerCheck.