Are there any other options?
The Uniform Transfers to Minors Act (UTMA) and the Uniform Gifts to Minors Act (UGMA) were passed to allow for the creation of custodial accounts for children. A UGMA account can hold financial products like stocks, mutual funds, and bonds.
In 1986, the UTMA was recommended as an extended version of the UGMA. It gives an account holder the ability to convey real estate, motor vehicles, collectibles, and other types of property into a custodial account that will be inherited by the child.
At this point, all the states in the union except South Carolina have adopted the Uniform Transfers to Minors Act, so the expanded investment options are available in Ohio.
With either type of account, a custodian that is named will manage the assets until the child reaches the age of majority.