I have 2 small kids and I set up a UGMA account for them when they were born. It was difficult finding all the various benefits with each option but I felt this was the best as I can trade in their account for them. My wife and I both contribute up to $26,000 each year for each child. With compound interest it should do very well by the time they reach College age.

I read the other post where a parent worried about their kid being a loser and having all of these funds but what is there for the kids to be notified about this account? I know in my plan my wife and I never plan to tell them they have this account set up for them so they work harder at school. And maybe even use it to purchase gifts for them. For example, if the get straight A’s, being promised a car. I don’t believe there are any limitations for withdrawal as long as it’s benefitting the recipient.