Washington Custodial Account Rules for Parents
What Washington 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?
Yes / varies
Washington
How custodial accounts work in Washington
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 Washington's Uniform Transfers to Minors Act (UTMA), the custodianship generally ends and the child takes full control at age 21. Older UGMA accounts in Washington use the age of majority, 18.
Extension rules: You can extend custodianship to age 25.
SpaceX pledge
What this could mean for a SpaceX share in Washington
SpaceX and Elon Musk have not announced how shares would be delivered to children. If a share were placed in a custodial account, Washington'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, and see what one share is worth on the SpaceX stock price page.
Taxes
Taxes and financial aid
- Investment income in a child's name may be subject to the federal "kiddie tax".
- Washington 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 Washington parents can get help
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