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Definitions from WordNet

Definitions from the Web

Custodial Account

Definition:

A custodial account is a financial arrangement wherein a designated adult manages and controls assets or property on behalf of a minor or someone who cannot manage these assets independently.

Senses:

Sense 1 - Financial Sense:

In the financial sense, a custodial account refers to an investment account opened by a parent or guardian for the benefit of a minor. The adult acts as the custodian until the minor reaches a certain age, during which the custodian has the legal responsibility to make financial decisions on the minor's behalf.

Related products: investment books, children's books on money

Example Sentence:

John opened a custodial account for his son's college fund. He carefully managed the investments until his son turned 18.

Sense 2 - Legal Sense:

In the legal sense, a custodial account refers to a trust account established as part of a legal agreement where a third party, known as the custodian, takes possession of property or funds on behalf of another person or group.

Related products: legal books

Example Sentence:

The attorney set up a custodial account to hold the settlement funds on behalf of the injured party until they turned 21.

Sense 3 - Local Sense:

In some regions, a custodial account can refer to a savings account opened by individuals with the purpose of saving money for funeral expenses or final arrangements.

Related products: funeral planning books

Example Sentence:

Many families in our community maintain a custodial account to ensure they have funds readily available for funeral expenses.