Can I open a kid’s investment account if I am not the parent?
Yes, grandparents, aunts, uncles, and friends can open a kid's investment account for a child to help with their financial future. However, if you open the account, you’ll become the account's custodian. This means you will be responsible for managing the account until the child reaches adulthood.
If you'll be opening the account as the custodian, you'll also need the child's date of birth and SSN. You can read more about what information is needed to open an account here.
What does being a custodian mean?
As the custodian, you’ll make decisions about contributions, withdrawals, and how the funds are invested. If you're not ready to take on the custodian role, there’s another option: the child’s parent can open the account.
Can I choose only to cover the costs for the account?
Right now, only the custodian is responsible for paying the admin fees.
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