Custodial Account
/ˌkʌstəˈdiəl əˈkaʊnt/
Definitions
- (n.) A financial account managed by one party (custodian) for the benefit of a minor or another beneficiary until they legally attain control.
The child's inheritance was held in a custodial account until she turned eighteen.
Forms
- custodial account
- custodial accounts
Related terms
See also
Commentary
Custodial accounts are distinct from trusts but share fiduciary management features; clarity in drafting should specify the custodian's powers and beneficiary's rights.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.