What is a custody account?
What is a custody account?
Custody accounts are financial accounts that a legal guardian or custodian manages on behalf of a beneficiary. The custodian has a fiduciary duty to the beneficiary. These types of accounts can be beneficial for both beneficiaries. Custodial accounts are generally managed by financial institutions.
A custodial account is an excellent way to save for your child's future. These accounts are great for higher education and other expenses, and they offer tax benefits. They're also a great way to teach your child about money management. Custodial accounts are easy to establish and cost less than trusts.
A custody account also helps children learn about money management and investing. They can participate in the account decision-making process by reviewing the account statements and discussing investment options. This will give them a voice in important decisions. Custody accounts are regulated by state law, but the main rule is that a custodian can withdraw funds from the account if they are in the best interests of their child. They must also ensure that the assets in the account benefit only the minor child.
Custody accounts are financial accounts opened in the name of a child by an adult. The adult that opens the account is the custodian and is responsible for managing the money. The account has tax advantages, but it can also limit the financial aid that the child may receive.
If you have any questions or in need a Child Custody Attorney, we have the Best Attorneys in Utah. Please call this law firm for free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
