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A custodial account is a popular way for parents and guardians to invest for their children’s future. Accounts are easy to set up and manage, and the adult custodian can choose from a wide range ...
Continue reading → The post Best Custodial Accounts in 2021 appeared first on SmartAsset Blog. Usually these types of accounts are set up by a parent, relative or guardian on behalf of a family ...
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A custodial account is a financial account (such as a bank account, a trust fund or a brokerage account) set up for the benefit of a beneficiary, and administered by a responsible person, known as a legal guardian or custodian, who has a fiduciary obligation to the beneficiary. [1]
Under the UGMA or UTMA, the ownership of the funds works like it does with any other trust and the donor must appoint a custodian (the trustee) to look after the account for the benefit of the beneficiary. [citation needed] Until 1986, a UGMA or UTMA account allowed the assets to be taxed at the minor's income tax bracket. Tax law changes in ...
The Uniform Transfers To Minors Act (UTMA) is a uniform act drafted and recommended by the National Conference of Commissioners on Uniform State Laws in 1986, and subsequently enacted by all U.S. States, which provides a mechanism under which gifts can be made to a minor without requiring the presence of an appointed guardian for the minor, and which satisfies the Internal Revenue Service ...
A downside of custodial accounts is that since the assets are owned by a minor, it could impact the ability of the child to get federal financial aid for college.
Once an order is confirmed i.e. when buy/sell part gets its corresponding sell/buy part, the trade is forwarded to the settlement system. During the settlement the custodial participant has to confirm that the order placed by the trading member on behalf of his client is valid and that the trade can occur.