Rhode Island Custodial Account Rules for Parents
What Rhode Island parents should know about holding stock for a child — including a SpaceX share, if Elon Musk's pledge to give one to every American child goes ahead.
UTMA account ends at
Age 21
UGMA age of majority
Age 18
Can the age be extended?
Default applies
Rhode Island
How custodial accounts work in Rhode Island
A custodial account lets an adult (the custodian) hold and manage investments, such as stock, for a child. The assets legally belong to the child, and the custodian must manage them for the child's benefit.
Under Rhode Island's Uniform Transfers to Minors Act (UTMA), the custodianship generally ends and the child takes full control at age 21. Older UGMA accounts in Rhode Island use the age of majority, 18.
Extension rules: Rhode Island does not list a special option to change the termination age; the default of 21 generally applies.
SpaceX pledge
What this could mean for a SpaceX share in Rhode Island
SpaceX and Elon Musk have not announced how shares would be delivered to children. If a share were placed in a custodial account, Rhode Island's rules above would typically decide when your child could control or sell it.
There is currently no official sign-up. Don't share your child's Social Security number or pay anyone to "claim" a share. Track official updates on our Latest News page.
Taxes
Taxes and financial aid
- Investment income in a child's name may be subject to the federal "kiddie tax".
- Rhode Island state income tax rules may also apply — check with the state's tax agency or a tax professional.
- Custodial accounts are counted as the student's asset on federal financial aid forms, which can affect aid eligibility more than parent-owned savings.
Official help
Where Rhode Island parents can get help
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