Custody Account
/ˈkʌstədi əˈkaʊnt/
Definitions
- (n.) An account held by a financial institution to safeguard and manage securities or assets on behalf of a client.
The investor's securities were held securely in a custody account with the bank.
- (n.) A type of account used to hold and administer assets during legal guardianship or fiduciary responsibility.
The guardian arranged a custody account to manage the minor's inheritance.
Forms
- custody account
- custody accounts
Related terms
See also
Commentary
Custody accounts are distinct from general bank accounts as they primarily serve to protect client assets and ensure proper management under legal or fiduciary obligations.
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.