If I am custodian for an Education IRA (Coverdell Education Savings Account). What happens when the child turns 18 (age of majority)? Do they get control or does it remain with the custodian?

My research shows that they do not get control. However, my broker is claiming that the now majority age child must sign off on any distributions or roll-overs or account transfers and that this is not a federal requirement, but a requirement of the financial institution. What would happen if we could not agree and the child turns 30?

2 Answers 2


This link will help. It confirms the ESA permits you to change beneficiaries. But the plan document must allow this, so it's back to the broker.


Did some reading up on this as well. And as long as you have other kids you can change the beneficiary to the other kids. If you run out of kids well, it gets withdrawn and you get slapped with a 10% penalty tax for non-education use.

No way to roll it to an IRA or anything like that.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .