In custodial accounts, adults can start accounts under the child’s name. These accounts are considered established under the Uniform Transfer/Gift to Minors Act. The key here is the word “gift.” Although you may intend for the account to be used for college or some other specific purpose, once the child reaches 18, the account becomes the child’s to do with as he/she chooses. Adults can invest up to the gifting limit ($13,000 in 2012) each year without doing a gift tax return. Some feel students should share in the responsibility for education costs after high school, and encouraging your child to set aside money for a future goal is a good financial habit as well.