Custodial account
An account set up with a bank or securities company in your child's name.
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Custodial accounts are an excellent way to provide future assets for minor children.
You should consider opening a custodial account. You could be the custodian for your son and the account would be under your son's Social Security number. Therefore, your son would pay the taxes at his income tax rate.
Custodial Account
An account opened on the behalf of a minor by an adult who acts as custodian. The custodian is usually one of the child's parents--both parents cannot be custodian.
Custodial Account
1. An account created at a bank, brokerage firm or mutual fund company that is managed by an adult for a minor that is under the age of 18 to 21 (depending on state legislation).
Custodial Account
An account for the benefit of a minor with an adult as the custodian.
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Custodial account
If you want to make investments on a minor's behalf, or transfer property you own to that person, you can open a custodial account with a bank, brokerage firm, mutual fund company, or insurance company.
Custodial Account
Definition: The type of account created for minors that is overseen by an adult custodian. If you are under 18 years old, you need an adult to oversee the account so this is the required account for you to open.
Custodial Account (finance term)
Uniform Transfers to Minors Act (UTMA) (finance term)
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Custodial Account
An account created for a minor, where the custodian manages cash and other property gifted to minors under the Uniform Gifts to Minors Act (also known as the Uniform Transfers to Minors Act).
The other type of account is a custodial account, where you don't own the money -- your child does.
Sinking fund A custodial account used by a bond issuer (such as a corporation or government body) to place a predetermined amount each year toward payment of the principal on its bond issue.
Custodial Account
An account established for the benefit of a minor or other beneficiary.
Individual retirement arrangement (IRA) A custodial account or trust that individuals may use to set aside earned income for retirement and let it grow tax-deferred.
Individual Retirement Accounts are commonly known as IRAs. these accounts are a trust or custodial account setup for the exclusive benefit of you or your beneficiaries.
Your broker can help you set up a custodial account. Because of the lower limits on investment income for children, it may take some time before any tax is owed and then at the child's rate.
Uniform Gifts to Minors Act (UGMA): A law adopted by many states that established a simple process for distributing gifts in custodial accounts (rather than trusts) to minors.
Custodian
Either (1) a bank, agent, trust company, or other organization responsible for safeguarding financial assets, or (2) the individual who oversees the mutual fund assets of a minor's custodial account.
 See also: Account, Stock, Investment, Investing, Vesting
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