The Trump Account is a custodial brokerage account for minors

The Trump Account is a savings and investment account designed for children under 18, offered through Trump Media & Technology Group. It functions as a custodial account, meaning a parent or legal guardian controls the account and makes all decisions until the child reaches the age of majority (usually 18 or 21, depending on state law). The account allows families to save money, invest in stocks or funds, and teach children about money management.

Unlike a regular savings account at a bank, a custodial brokerage account lets you invest the money rather than simply hold it. The Trump Account specifically is tied to Trump Media's ecosystem, though the actual brokerage services are handled by a licensed financial partner. Funds in the account belong to the child, not the parent, which has tax and legal implications you should understand before opening one.

Key Takeaways

  • A Trump Account is a custodial brokerage account where a parent or guardian controls the money until the child reaches adulthood, typically 18 or 21.
  • The account allows you to invest money in stocks, funds, or other securities rather than simply saving it in a bank account.
  • Money deposited into the account legally belongs to the child, which affects how it is taxed and how it counts toward financial aid.
  • You will need to provide the child's Social Security number and proof of identity for the parent or guardian to open the account.
  • Custodial accounts have rules about when and how the child can access the money once they turn 18 or 21.

How a custodial account works and who controls it

When you open a Trump Account, you act as the custodian. This means you deposit money, choose what to invest in, and manage the account day-to-day. The child's name is on the account, but they cannot make trades, withdraw money, or change settings until they reach the age of majority in your state. You have full control during this time.

The money in the account is legally the child's property, not yours. This distinction matters for taxes and for financial aid calculations. If the child receives income (from a job, for example), that income is taxed at the child's tax rate, which is often lower than the parent's rate. However, the first portion of unearned income (like investment gains) may be taxed at the child's rate, and anything above that threshold is taxed at the parent's rate until the child turns 18.

Once the child reaches the age of majority, the account transfers to their control automatically. They can then withdraw money, make their own investment decisions, or close the account. Some states allow the age of majority to be 21 rather than 18, so check your state's law before opening the account.

What you need to open a Trump Account

To open a Trump Account, you will need the child's Social Security number and proof of identity for both the child and the parent or guardian. Acceptable forms of ID typically include a driver's license, passport, or state ID card. You will also need to provide your relationship to the child and confirm that you are a legal guardian or parent.

The account opening process is usually done online through Trump Media's website or app. You will answer questions about your financial situation, investment experience, and the purpose of the account. Some custodial accounts have minimum deposit requirements, though these vary by provider. Check the specific terms before you begin.

You will also need to designate a beneficiary and decide how the account will be funded—whether through a one-time deposit, regular contributions, or transfers from another account. Some families fund custodial accounts with money from gifts, inheritance, or the child's own earnings.

Tax implications and how custodial accounts affect financial aid

Money in a custodial account is taxed differently depending on where it comes from. If the child has earned income (wages from a job), that income is taxed at the child's rate. Investment income—such as dividends or capital gains—follows a more complex rule called the kiddie tax. The first portion of unearned income is tax-free, the next portion is taxed at the child's rate, and anything above that is taxed at the parent's rate until the child turns 18.

Custodial accounts also affect financial aid calculations. When you fill out the Free Application for Federal Student Aid (FAFSA), money in a custodial account counts as the child's asset. This can reduce the amount of need-based financial aid the child is offered, because the government assumes the child's own assets should be used first to pay for education. The impact varies depending on the total amount in the account and the family's overall financial situation.

If you are planning to use a custodial account to save for college, understand that it may lower financial aid may be able to access. Some families use 529 college savings plans instead, which have different tax and financial aid treatment. Speak with a tax professional or financial advisor if you are unsure which account type makes sense for your situation.

Differences between a Trump Account and other custodial accounts

Custodial accounts exist at many financial institutions—banks, brokerages, and investment firms all offer them. The Trump Account is one option, but it is not the only one. The main difference is the provider and the investment options available. A Trump Account is managed through Trump Media's platform, while other custodial accounts might be offered by Fidelity, Vanguard, Charles Schwab, or your local bank.

Some custodial accounts are tied to specific investment products, like a 529 plan for college savings or a Roth IRA for retirement savings. A general custodial brokerage account, like the Trump Account, typically allows broader investment choices—stocks, bonds, mutual funds, and exchange-traded funds (ETFs). The fees, minimum deposits, and investment options vary by provider, so compare before opening an account.

The legal structure of custodial accounts is the same across providers—the money belongs to the child, the parent controls it until adulthood, and it transfers automatically when the child reaches the age of majority. The differences are in how the account is managed, what you can invest in, and what fees you pay.

What happens when the child turns 18 or 21

When the child reaches the age of majority in your state (usually 18, sometimes 21), the custodial account automatically transfers to their control. They become the owner and can make all decisions about the money. They can withdraw it, invest it differently, or leave it as is. You no longer have any authority over the account.

This transfer happens by law, not by choice. You cannot extend your control past the age of majority, and the child cannot be forced to keep the account open. Some young adults close custodial accounts and move the money elsewhere; others keep them and continue investing. The choice is theirs once they reach adulthood.

If you want to maintain some influence over how the money is used after the child turns 18, you would need to set up a trust or other legal arrangement before opening the custodial account. A custodial account alone does not allow you to restrict the child's use of the money after they reach adulthood.

Risks and limitations of custodial accounts

Custodial accounts reduce financial aid may be able to access, as mentioned above. They also count as the child's asset if the child ever needs to apply for means-tested benefits like Supplemental Security Income (SSI). If the child becomes disabled and receives SSI, a large custodial account could disqualify them from benefits or require them to spend down the account first.

Another consideration is that once the child reaches adulthood, you have no control over how they use the money. If you are concerned about the child's financial judgment, a custodial account may not be the right tool. A trust, which allows you to set conditions on how and when money is used, offers more control—but trusts are more expensive to set up and maintain.

Investment risk also applies. If you invest the money in stocks or other securities, the value can go down as well as up. Custodial accounts are not insured by the FDIC (the Federal Deposit Insurance Corporation) if the money is invested in securities. Only the cash portion of the account, if held at a bank, would be FDIC-insured up to $250,000.

Frequently Asked Questions

Can I take money out of my child's Trump Account if I need it?

No. The money in a custodial account legally belongs to the child, not to you. Taking money out for your own use is considered a violation of your duty as custodian and can have legal consequences. The account is meant to benefit the child only.

What happens if the child doesn't want the money when they turn 18?

Once the child reaches adulthood, the account is theirs to control. They can withdraw all the money, leave it invested, or transfer it elsewhere. You cannot force them to keep it or use it in any particular way. The decision is entirely theirs.

Does a Trump Account affect my child's credit score?

No. A custodial brokerage account does not appear on credit reports and does not affect credit scores. Credit scores are based on borrowing and repayment history, not on savings or investment accounts.

Can I open a Trump Account if my child doesn't have a Social Security number yet?

No. You will need the child's Social Security number to open any custodial account. If your child does not have one, you can request one from the Social Security Administration before opening the account.

What if I die before my child reaches adulthood?

The account will pass to the alternate custodian you named when you opened it, or to your estate if you did not name one. It is important to name a successor custodian when you set up the account so that someone you trust can manage it if something happens to you.