What a Trump Account Is and Who Can Have One

A Trump Account is a custodial investment account offered by Trump Media & Technology Group, designed to let parents or guardians invest on behalf of minors. The account is held in the child's name but controlled by an adult until the child reaches the age of majority (usually 18 or 21, depending on your state). The account lets you buy and hold shares or other investments while the minor is still underage.

Trump Accounts work similarly to other custodial accounts like Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) accounts, but they are specific to Trump Media & Technology Group's platform. The account belongs legally to the child, not the parent, which has tax and inheritance implications you should understand before opening one.

Not all states allow Trump Accounts, and not all custodians offer them. Before you begin the process, check whether Trump Media & Technology Group currently offers custodial accounts in your state and whether the platform is actively accepting new accounts.

Key Takeaways

  • A Trump Account is a custodial investment account held in your child's name but controlled by you until they reach adulthood.
  • You will need your child's Social Security number, proof of your identity, and proof of your relationship to the child to open the account.
  • The account is taxed as the child's income, not yours, which may lower your overall tax burden depending on the child's income level.
  • You can transfer money into the account, but there are annual gift tax limits that vary by year and by giver.
  • Once your child reaches adulthood, they gain full control of the account and can do whatever they want with the funds.

Documents and Information You Will Need

To open a Trump Account for your child, gather these items before you start:

  • Your child's full legal name and date of birth
  • Your child's Social Security number
  • Your full legal name, date of birth, and Social Security number
  • Proof of your identity (driver's license, passport, or state ID)
  • Proof of your relationship to the child (birth certificate, adoption papers, or court order naming you as guardian)
  • Your current address
  • Your phone number and email address

Some custodians may ask for additional information such as your employment status, annual income, or investment experience. Have this information ready before you begin the application.

Steps to Open the Account

The exact process depends on which custodian is offering Trump Accounts in your state. In general, the steps are:

  1. Visit the Trump Media & Technology Group website or contact a custodian that offers Trump Accounts.
  2. Select the option to open a custodial account and choose your child as the beneficiary.
  3. Enter your personal information and your child's information into the online form or paper application.
  4. Upload or mail copies of your identity documents and proof of your relationship to the child.
  5. Review and sign the custodial account agreement, which explains your duties as custodian and the child's rights when they turn 18 or 21.
  6. Fund the account by transferring money from your bank account or by other approved methods.
  7. Wait for the custodian to verify your documents and approve the account, which typically takes 5 to 10 business days.

Once the account is open, you can buy and sell investments within it using the platform's tools. You will receive statements showing the account balance and transaction history.

Gift Tax Limits and Annual Contributions

The IRS sets an annual gift tax exclusion, which is the amount of money you can give to another person each year without filing a gift tax return. For 2024, that limit is $18,000 per person per year. If you are married, you and your spouse can each give $18,000 to your child in the same year, for a total of $36,000, without triggering gift tax reporting.

These limits change each year, so check the IRS website or speak with a tax professional before making large contributions. If you exceed the annual limit, you must file Form 709 (Gift Tax Return) with the IRS, though you may not owe tax if you have not exceeded your lifetime exemption.

Money you contribute to the account is considered a gift to your child. Once the money is in the account, it belongs to the child legally, even though you control it until they reach adulthood. You cannot take the money back or use it for your own expenses without breaking the law.

How the Account Is Taxed

Income earned inside a Trump Account (such as dividends or capital gains) is taxed as your child's income, not yours. This can be a tax advantage if your child has little or no other income, because the first portion of investment income may be taxed at a lower rate or not taxed at all.

For 2024, a dependent child can earn up to $1,300 in unearned income (such as investment gains) before owing federal income tax. Above that amount, the income is taxed, but often at the child's lower tax rate rather than your higher rate. If the child's unearned income exceeds $2,600, the "kiddie tax" rules may apply, which tax the excess at the parent's rate instead.

You will receive a Form 1099 or similar tax document each year showing the income earned in the account. You may need to file a tax return for your child or report the income on your own return, depending on the amount and your state's rules. Consult a tax professional to understand your specific situation.

What Happens When Your Child Turns 18 or 21

When your child reaches the age of majority in your state (usually 18, but sometimes 21), the account transfers to their full control. You lose the right to make decisions about the account, and your child can withdraw all the money, change investments, or close the account entirely.

This is a significant moment, so many parents discuss the account with their child before they turn 18 and explain how it works and what the money is intended for. Some states allow you to delay the transfer of control past age 18 if you set that up when you open the account, but this varies by state and custodian.

Once your child has control, the account continues to be taxed as their income. They will receive tax documents and be responsible for reporting the income on their own tax return.

Frequently Asked Questions

Can I open a Trump Account if I am not the child's biological parent?

Yes. Grandparents, aunts, uncles, legal guardians, and other adults can open custodial accounts for minors. You will need to provide proof of your legal relationship to the child, such as a guardianship order or custody agreement. Some custodians may have additional requirements.

What if I want to close the account before my child turns 18?

You can close a custodial account at any time, but the money still belongs to your child legally. You cannot take the funds for yourself. The money must either stay in the account, be transferred to another custodial account, or be used for the child's benefit (such as education or medical expenses). Consult the custodian about their specific closure procedures.

Can my child have more than one Trump Account?

Generally, a minor can have only one custodial account per custodian in their name. However, you could open accounts with different custodians if you want to spread investments across multiple platforms. Check with each custodian about their rules.

Do I need a lawyer to open a Trump Account?

No. The custodian provides the account agreement, which is a legal document you sign. You do not need a lawyer to open the account, though consulting one about tax or estate planning implications is optional and may be helpful if your situation is complex.

What if my child wants to invest in Trump Media stock specifically?

If the Trump Account is offered through Trump Media & Technology Group, you may be able to purchase their stock directly within the account. However, not all custodians offer individual stock purchases, and not all platforms allow minors' accounts to hold certain securities. Check the platform's rules before opening the account.