Vanguard makes a distinction between Custodial and ugma. Their cs suggested ugma but everything I have read makes me believe that an ugma is not the way to go. #1 they are irrevocable, #2, at 18, said child would get control of the money. I'm not too comfortable with either condition.
I'm surprised that V. didn't have better customer service on this issue. The first person had no idea of the difference and had to transfer me, and the second person wasn't convincing in their grasp of the difference. I don't want to make a mistake based on a poor understanding of my options.
I think I have discovered other possibilities: keep the money in my name and have child as beneficiary. I could then transfer ownership when I felt it was appropriate (which likely will not be 18) Or I could be a joint owner with child. I'm not sure of the details on that.
At this point, the only benefit I see to the ugma or custodial/guardian acct is that money is taxed at the child's rate. But I think I'm willing to trade off paying taxes at my rate with the peace of mind that my child won't spend it all on a car or vacation when they turn 18.