Thecustodial account definitionin banking is when an adult opens and manages a savings account at afinancial institutionin the name of a minor dependent person. The financial institution can be a bank, credit union, investment firm, orbrokerage account. A minor dependent is a person who is unde...
Each state has different rules for determining when the child must take control of the account. Financial aid may be impacted— Financial aid can be adversely affected by custodial accounts. They are considered assets owned by the child. Is a custodial account right for me? When choosing an ...
Joint savings accounts:A joint savings account can be an alternative to using a custodial account. These accounts allow multiple holders. It's a convenient way for more than one person to manage money in the same account. Kid-friendly accounts:Some banks offer accounts specifically for children....
An account where an adult serves as custodian and holds supervisory powers over the investments. The account will conform to Uniform Gift to Minors Act (UTMA) or the Uniform Transfer to Minors Act (UTMA) rules depending on the state statutes. Income eligibility restrictions None Contribution ag...
A529 education savings accountcan also be set up as a custodial account or as an individual account. For a breakdown of how a UTMA/UGMA account compares to a 529 college savings plan,see this article. In addition, parents can open aRoth IRAfor their children if the child has earned incom...
Words related to custodial account nouna brokerage firm account that parents have created for a minor Related Words cash account Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc. Want to thank TFD for its existence?Tell a friend about us, add a...
Custodial savings accounts are controlled by an adult for the benefit of a minor. State laws dictate whether creditors may garnish custodial savings accounts based on how the account is set up and the source of the funds within the account.
Understand custodial accounts and what custodial account rules are. Learn about types of custodial accounts. See advantages and disadvantages of a custodial bank account. Related to this QuestionWhat is a cash account? What is a checking account? What is a debtor's control account? What is a ...
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The term "custodial account" generally refers to achild's or teen's savings accountat a financial institution, mutualfund company, or brokerage firm managed by one person for the benefit of another. Generally, an adult controls a custodial account for a minor (a person under the age of 18 ...