Account Type What It Is Type of Investments You Can Make When Child Gains Control Uniform Gifts to Minor Account (UGMA) A custodial account that allows you to gift assets to a child Cash, stocks, bonds, mutual funds, ETFs 18 or 21 Uniform Transfers to Minor Account (UTMA) This custodial account allows for more assets Cash, stocks, bonds, mutual funds, real estate, arts and patents 18 or 21 Coverdell ESA Tax-advantaged education savings account Stocks, bonds, ETFs, mutual funds Must be used by age 30 529 Plan State-sponsored college plans Mutual funds, ETFs Tax-free growth and withdrawals for qualified education expenses; possible state tax deductions If you’re considering opening an account for a child, you’ll usually have two main choices: custodial investment accounts or custodial…