Custodial Accounts

Forum|Forum|6 months ago
December 3, 2025
1 reply
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As a grandparent do I receive a deduction for funds I transferred into a custodial account, which I established, in 2025.

Best answer by rjs

Expert Reviewed

No, you don't get a deduction. The money you put into the custodial account is a gift from you to your grandchild. It is not deductible by you, and it is not taxable income to the grandchild.

If the gift was more than $19,000 you must file a gift tax return, Form 709. You will not have to pay any gift tax unless the total of all gifts that you have given in your lifetime is over $13.99 million, but you have to file the return. A gift tax return is separate from your income tax return. You cannot file a gift tax return with TurboTax.

The grandchild who received the gift does not have to do anything, no matter how large the gift was.

rjs

Answer

Level 15

Expert Reviewed

No, you don't get a deduction. The money you put into the custodial account is a gift from you to your grandchild. It is not deductible by you, and it is not taxable income to the grandchild.

The grandchild who received the gift does not have to do anything, no matter how large the gift was.