Custodial accounts under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) allow you to save on behalf of a child for education or any other purpose that benefits the child (other than parental obligations such as food, clothing, and shelter).
Key benefits of an UGMA/UTMA
You can contribute as much as you want, but amounts above $14,000 per year ($28,000 for a married couple filing jointly) will incur federal gift tax.
Anyone can open or contribute on behalf of a child.
There is no penalty if account assets aren't used for college.