A UGMA (Uniform Gifts to Minors Act) investment account is a custodial (i.e., parent, guardian, etc.) account that lets loved ones invest on behalf of a minor child (“minor” or “child”). It provides a way to hold and manage assets until the child reaches adulthood. The account is held in the child’s name, but the custodians have control over the investments until the child reaches the age of majority (generally 18 or 21 ) depending on your state. It might offer a tax advantage by allowing the child to potentially pay lower taxes on investment gains or losses.