It's never too early to start planning for the future. A ShareBuilder Custodial Account is an investment account created for the benefit of a minor. Custodial accounts are opened under the Uniform Transfer to Minors Act (UTMA), making the minor the owner of the account assets. However, a custodian (this is where you come in) must manage the account until the minor reaches the age of distribution for their state of residence. Earnings (up to a certain amount) will be taxed at the minor's rate.
Tip: State laws may restrict who can open a custodial account. Please consult a financial advisor for additional information on custodial account restrictions and tax reporting questions. Also, there can only be one minor and one custodian for each custodial account.