Custodial accounts let you invest on behalf of a minor, directly from your Robinhood app. Below are answers to some common questions about how custodial accounts work, who can open them, and what to expect over time.

A custodial account is an investment account opened and managed by an adult (the custodian) for a minor (the beneficiary).

Custodial accounts on Robinhood are governed by the Uniform Transfers to Minors Act (UTMA), with certain legacy Uniform Gifts to Minors Act (UGMA) features preserved by state law. While the custodian manages the account, the assets legally belong to the minor and are intended to benefit them.

The minor beneficiary is the legal owner of the account.

The custodian controls the account until the minor reaches the account’s age of termination, typically 18 or 21 depending on the state where it is created, at which point the account automatically transfers to the beneficiary.

To open a custodial account on Robinhood, you must:

• Have an active US Robinhood individual account
• Be W-9 certified
• Be a US citizen (the minor, not the custodian)
• Be able to provide the minor’s:
  • Full legal name
  • Social Security number
  • Date of birth
  • Residential address
• Be able to certify the minor’s tax status on their behalf
• Open the account before the minor reaches the applicable age of majority under the governing state’s UTMA law (typically the state where you or the minor lives)

You don’t need to be the minor’s parent or legal guardian to open a custodial account, as long as you can provide the required information.

1. In the app, select Add (+ icon)

• On the web, select Account → Profile → Add account

2. Select Custodial
3. If you want to transfer in an external custodial account, select Yes or if you want to create a new custodial account, select No
4. Enter the minor’s personal information:

• Full legal name
• Social Security number
• Date of birth
• Residential address

5. Choose the transfer age, if permitted by the governing state → Select Continue
6. Review the legal agreements → Select Agree and accept
7. Start funding the account

Yes. You can open multiple custodial accounts, including:

• Multiple accounts for different minors
• Multiple accounts for the same minor

Each custodial account has one custodian and one beneficiary. A single custodian can have up to 10 custodial accounts total.

Most custodial account applications are reviewed within 1-3 business days, but some reviews can take longer.

If we need more information to finish your application, we’ll let you know what’s needed. Depending on the situation, we may ask for documents to verify information about you (the custodian) or the minor (the beneficiary). Examples can include government-issued ID, proof of address, or documents that support the minor’s identity details.

To check your status in the app:

1. Navigate to the custodial account application in the list of accounts at the top of your investing dashboard
2. You can view any pending steps or the status of your application

Note that you're limited to one pending application for a given minor at any point. You won't be able to start another application for a custodial account for the same minor until the first one is approved.

If you don’t see any pending steps and it’s still pending after several business days, contact Robinhood Support so we can review the application status.

Yes. More than one adult can open a custodial account for the same beneficiary. Each account is managed separately by its own custodian.

At this time, you can’t convert an existing individual brokerage account into a custodial account. Custodial accounts are a separate account type with different legal ownership (the assets belong to the minor). However, you can create a custodial account and transfer assets from your Robinhood individual account into the custodial account. Keep in mind that moving assets from your individual account into a custodial account changes legal ownership of those assets to the beneficiary.

Note that you can only transfer in cash, stocks, and ETFs into a custodial account. For full details on internal asset transfers, check out Internal assets transfer.

If you want a custodial account for a minor, you’ll need to open a new custodial account and fund it.

Ways you can typically fund a custodial account include:

• Depositing cash from a linked payment method
• Transferring assets from another identically-titled custodial account at another brokerage firm
• In your Robinhood bank account, transfer funds to your Robinhood individual account and then move those funds into a custodial account
• Transferring assets from one of your self-directed, taxable brokerage accounts into the custodial account
• Accepting gifts through the custodial account’s gifting link

Moving invested assets from your own individual account to a custodial account changes legal ownership. Once you move invested assets into the custodial account, you cannot move them back to another account.

Robinhood custodial accounts are taxable brokerage accounts under UTMA rules, not retirement accounts.

We don’t currently support IRAs for minors, often called custodial IRAs, which include custodial Roth IRAs. Retirement accounts on Robinhood are opened and owned by the person whose name is on the account.

If your goal is a retirement account for a minor, keep in mind that IRA eligibility generally depends on the minor having earned income and meeting other requirements. Robinhood Support can confirm what account types are available on Robinhood, but we can’t determine IRA eligibility for your specific tax situation.

Custodial accounts may not appear as an option for you if you’re not yet eligible.

Common reasons you won’t see Custodial under Add account include:

• You’re on an old version of the app and will need to download the latest available version
• You don’t have an active, approved individual brokerage account under the same login
• Your individual account isn’t in good standing (e.g., it’s restricted)
• You’re not eligible for custodial accounts based on where you live or other onboarding requirements
• Refer to these troubleshooting steps if you still can’t see the option to open a custodial account

If you do see an option to add another account but it only asks for a nickname and your information (and doesn’t ask for the minor’s name, SSN, date of birth, and address), that isn’t a custodial account.

If you believe you’re eligible and still don’t see an option to open a custodial account, contact Robinhood Support from your account so we can review what’s blocking access.

Custodial accounts support many of the same investments as standard Robinhood accounts, with some restrictions.

Supported

• Stocks and ETFs
• Recurring investments
• Recurring deposits
• Dividend reinvestment (DRIP)
• High-yield cash
• Managed custodial accounts (via Robinhood Strategies)

Not supported

• Options trading
• Futures and event contracts
• Short selling
• Crypto
• Margin investing (margin is enabled on managed custodial accounts to allow for immediate reinvestment of any sale proceeds)

Keep in mind, what we support may change in the future.

You can use UTMA (custodial) funds for any expense that directly benefits the minor.

Under UTMA rules, money and assets in a custodial account legally belong to the minor and must be used for the minor’s benefit, not the custodian’s. There are no restrictions that limit spending only to education.

Examples of permitted uses

UTMA funds can generally be used for:

• Education expenses (tuition, books, tutoring, supplies)
• Medical and dental expenses
• Childcare or summer programs
• Specialized housing-related costs that benefit the minor (i.e. summer programs, student housing)
• Technology or equipment for school or skill development
• Other reasonable expenses that support the minor’s wellbeing

Important limitations

• Funds can’t be used for the custodian’s personal expenses or for ordinary parental support obligations
• Withdrawals must be defensible as benefiting the minor
• Assets transferred into a custodial account are irrevocable and can’t be moved back to a non-custodial account
• Once the minor reaches the account’s age of termination, the funds and assets are transferred to the beneficiary, who can use them for any purpose

This flexibility is a key difference between UTMA custodial accounts and more restricted accounts like 529 plans, which limit withdrawals to qualified education expenses.

No. Custodial accounts can only have one beneficiary, and beneficiaries can’t be changed after the account is created.

If you want to invest for more than one minor, you’ll need to open a separate custodial account for each.

Custodial accounts are owned by the minor beneficiary and taxes are reported under the minor’s Social Security number, not the custodian’s. Robinhood issues tax forms in the beneficiary’s name.

Under federal “kiddie tax” rules, a portion of the minor’s unearned income may receive favorable tax treatment. Check out IRS Topic 553 or consult with a tax professional for more information.

When the beneficiary reaches the account’s age of termination (usually 18 or 21, depending on the state):

• The beneficiary creates an individual account in their name after which assets are automatically transitioned to this account
• The custodian’s access is restricted until the beneficiary claims the assets (by creating an individual account)
• After the transfer is complete, the custodian’s access is removed and the custodial account is deactivated
• Assets remain invested unless the beneficiary chooses to sell
• All optional features such as recurring investments, DRIP, SLIP, and High-yield cash will be paused on the account until the beneficiary claims the assets in their own individual account and re-enables these features

This transfer can’t be delayed or blocked by the custodian.

In some states, you can choose the age of termination (for example, up to age 25). In other states, the age is fixed by law.

The age of termination is set when the account is opened and can’t be changed later, even if you or the beneficiary move to another state. The following table shows examples of states where the age of termination differs.

An account transfer can be rejected for a number of reasons. In order for a transfer to be successful the beneficiary’s name, transfer age, and state must match exactly on both accounts. You may need to create a new custodial account with Robinhood using the details from the external account to complete the transfer request.

Yes. You can share a gifting link that allows family and friends—even those without a Robinhood account—to contribute to a custodial account. You can choose to accept cash, stock, or ETFs as gifts from those you share the link with. The gifting link for the custodial account will be present on its dashboard.

Gifting links are intended for the custodian to send to family and friends, allowing them to contribute to the custodial account. Gifting links are NOT intended for the custodian to send their own custodial account gifts. To do so, go through the standard deposit flow in the app to deposit funds directly into the custodial account. If you, as the custodian, send gifts to the custodial account you manage, large gifts may be delayed in processing or rejected. If this occurs, you can complete the deposit directly in the app instead.

A Robinhood custodial account doesn’t give the minor separate login access while they’re still a minor. As the custodian, you control the account and manage investing and withdrawals for the minor’s benefit.

When the beneficiary reaches the account’s age of termination:

• Robinhood will reach out to the beneficiary to create a Robinhood individual account in their own name, if they haven't done so already
• The custodial account’s assets automatically transition to the beneficiary’s individual account
• Your custodian access is removed

Until then, the account stays under your login and can’t be shared with the minor as a separate user.

If the beneficiary passes away, the assets become part of the minor’s estate and are handled according to state law. The custodian should contact Robinhood support to begin the required process.

If a custodian passes away before the minor reaches the age of termination, the account is restricted until a new custodian is appointed and verified. The successor custodian should contact Robinhood support to begin the required process.

No. Custodial accounts are currently available only for US customers and are governed by US UTMA/UGMA laws.

If your custodial account application is denied, it means we weren’t able to open the account based on our regulatory and compliance requirements. We may not be able to share specific details about why an application was denied.

If you’re able to reapply in the future, you’ll need to submit a new application. Make sure the information you enter matches official records, including:

• Your legal name and personal information
• The minor’s full legal name, Social Security number, date of birth, and address

If your application was denied and you think there may be an error in the information submitted, contact Robinhood Support from your account so we can help confirm what next steps (if any) are available.