What is a custody account?
What is a custody account? Min Austria Assistant at Ascent Law LLC 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 ma...