Village makes it easy for parents to give their kids money superpowers by opening a simple, flexible, custodial account for their child. The account allows parents, family, and friends to contribute financial gifts directly to the child.
A custodial account allows a parent or guardian to open a minor’s investment or savings account. The adult (or Custodian) who opens the account can manage the money and investments until the minor reaches the “age of majority.”
The benefit of the custodial account structure is that allows your child’s investments or savings to be available for any kind of use, not just limited to education (as it would be for a 529 account) and the child’s assets are protected from anyone else using them.
That age is usually 18 or 21, depending on the Custodian’s state. When the minor is old enough, money in a custodial account becomes their property. The assets deposited into a custodial account cannot be taken back or given to someone else.
Village is more flexible than other savings or investment accounts. Unlike 529 plans for example, funds in custodial accounts can pay for expenses other than higher education as long as they benefit the child. Funds saved can be used across any of your child’s life events like college, their first car, down payment on the house, wedding day or any other important milestone.