Custodial Accounts

What is a Custodial Account (UTMA/UGMA)?

In a Custodial Account (UTMA or UGMA), an adult, often a parent or guardian, oversees investments such as cash, stocks, bonds, or mutual funds on behalf of a minor. This adult serves as the custodian, managing the account until the minor reaches the legal age of majority, as determined by state law. The legal age of majority is usually 18 or 21, but can range up to age 25 depending on the state.

All custodial accounts will be opened as UTMA accounts.

Who controls a Custodial Account?

The assets in the account belong to the child or beneficiary while the custodian, typically a parent or another adult manages the assets. The custodian controls all investment decisions within the account until the beneficiary reaches the age of majority (between 18 and 25, depending on the state), at which point the assets must be transferred to the beneficiary. Withdrawals can be made at any time by the custodian, but they must be for the benefit of the beneficiary.

Can multiple custodial accounts be opened for the same beneficiary?

Each Custodial Account can have only one custodian. However, you may open multiple Custodial Accounts for the same beneficiary as long as each account has a different custodian under a separate login. Additionally, up to 10 Custodial Accounts may be opened per login, provided each account is for a different beneficiary.

Will the beneficiary be able to access the custodial account prior to transfer?

No. The beneficiary cannot access the custodial account until it is transferred into their name at the age of majority.

How do I open a Custodial Account?

You can open a Webull Custodial Account directly through the Webull mobile app. Detailed information must be provided for both the custodian and the beneficiary, such as personal identification, social security numbers, and financial details. For more information on how to open an account, click here.

What documents or information are required?

The custodian must provide standard account opening information, plus the beneficiary’s full name, date of birth, and Social Security Number.

Do I need to open an individual account first?

No, an individual account is not required to open a Custodial Account. However, when the beneficiary reaches the age of majority, they will need to open an individual account so the assets can be transferred into it.

How can I update my beneficiary’s SSN, name, or date of birth if it was entered incorrectly?

If your beneficiary’s Social Security number, name, or date of birth was entered incorrectly, you can request a correction through our in-app Help Center. Please include a clear copy of the beneficiary’s Social Security card or birth certificate to verify the correct information.

When does the custodian need to transfer the account to the beneficiary?

The custodian must transfer the account assets to the child once the beneficiary reaches the age of majority (between 18 and 25, depending on the state). The custodian will be notified by Webull when the transfer needs to be initiated. Once assets are transferred from the Custodian account to the beneficiary’s individual account, the assets belong to the beneficiary and the custodian has no authority over the use of the assets.

How can I deposit money into a Custodial Account?

You can fund a Custodial Account using ACH or wire transfers. Third-party wire funding is available at this time. However, ACH linking from a third-party account is not supported.

How do I send a third-party wire to a custodial account?

App

1. In the Transfer Money tab, select Wire as the “From” option and select the custodial account as the “To” option.
2. Tap Instructions for wire transfer.
3. Select No, someone else is sending the wire.
4. Enter the required third-party information: the amount being sent, the date the wire will be sent, the third party’s full name, and (optional) the name of the bank they will use.
5. After submitting this information, you will be directed to the wire instructions. You may share these instructions with the third party so they can complete the wire through their bank. It is important that all instructions are followed exactly to ensure a smooth and timely transfer process.
6. If the third party provides you with a wire confirmation, you may upload it using the Transfer completed, notify Webull button.

Failure to provide the required third-party wire information may result in processing delays or the wire being returned, minus any applicable fees. The third-party wires may also be held until the necessary information is received, and failure to submit the required information will ultimately lead to the return of the wire. For details on potential fees, click here and select the Other tab to view Deposit & Withdrawal Fees.

Can I withdraw from a Custodial Account?

Yes, custodians can withdraw funds from a Custodial account for the beneficiary's benefit, such as paying for tuition, medical bills, extracurricular activities, or other expenses that support their welfare. Please consult a tax advisor to understand any potential tax implications associated with these withdrawals.

Can I transfer funds or assets to/from a Custodial Account?

Yes, both internal and external transfers are possible, but the rules differ:

Internal Transfers

• Cash: You may transfer cash from your Individual Account to a Custodial Account using the Transfer Money option. Partial transfers are supported.
• Securities: Only full account transfers are supported, using the Internal Transfer feature from your Individual Account to a Custodial Account.

External Transfers

• You can transfer your Custodial Account both to and from another brokerage using the ACAT process.
• Both the custodian and beneficiary information must remain the same.
• This includes both full and partial account transfers.

All transfers or deposits to Custodial Accounts are considered irrevocable gifts to the beneficiary and cannot be reversed once completed

Can I transfer a Custodial Account to or from another brokerage?

Yes, you can transfer your Custodial Account both to and from another brokerage using the ACAT process. Whether you're transferring in from another firm or transferring out to another firm, both the custodian and beneficiary information must remain the same.

What's the contribution limit for custodial accounts?

Up to $19,000 ($38,000 for a married couple) can be contributed to an individual's custodial account before the gift must be disclosed to the IRS. Some gifts may be subject to federal gift tax. Please contact a tax professional if you have any further questions.

What investment products are supported in a Custodial Account?

Custodial Accounts support the following investments:

• Stocks and ETFs
• Money Market Funds
• Bonds
• Fractional Shares

Available features and programs:

• Cash Management
• Stock Lending (FPSL)
• Dividend Reinvestment Program (DRIP)
• Recurring Investments
• Recurring Deposits

Custodial Accounts are not eligible for margin trading, options trading, or leveraged ETFs.

Are Custodial Accounts eligible for Webull Premium and the higher cash management interest rate?

Yes. Custodial Accounts are eligible to subscribe to Webull Premium and can receive the associated higher interest rate.

How are custodial account earnings taxed?

Custodial account earnings (up to $1,350 in 2025) may be exempt from federal income tax. Additionally, for earnings that exceed the exemption amount, another $1,350 may be taxed at the child's tax rate. All income (such as interest, dividends, and capital gains) is reported under the beneficiary’s SSN or ITIN, and 1099 tax documents are sent to the custodian. For personalized guidance on tax filing, please consult a tax professional.

Webull does not provide tax advice. For personalized guidance regarding your tax situation, including reporting requirements and tax implications, please consult with a licensed tax professional.