custodial account Sentence Examples

  1. Opening a custodial account allows parents to invest on behalf of their children.
  2. A custodial account provides a way to transfer assets to minors until they reach legal age.
  3. The custodial account can hold various investments such as stocks, bonds, and mutual funds.
  4. Contributions to a custodial account are made with after-tax dollars.
  5. The custodial account custodian manages the investments until the minor beneficiary reaches adulthood.
  6. Custodial accounts offer tax advantages, as some investment gains may be taxed at the child's lower rate.
  7. The custodial account custodian has a fiduciary duty to act in the best interest of the minor beneficiary.
  8. Funds in a custodial account can be used for the minor's education, medical expenses, or any other purpose deemed suitable.
  9. Upon reaching the age of majority, the beneficiary gains control over the custodial account and its assets.
  10. Custodial accounts are governed by specific rules and regulations to ensure proper management and protection of the minor's assets.

custodial account Meaning

Wordnet

custodial account (n)

a brokerage firm account that parents have created for a minor

Synonyms & Antonyms of custodial account

No Synonyms and anytonyms found

FAQs About the word custodial account

a brokerage firm account that parents have created for a minor

No synonyms found.

No antonyms found.

Opening a custodial account allows parents to invest on behalf of their children.

A custodial account provides a way to transfer assets to minors until they reach legal age.

The custodial account can hold various investments such as stocks, bonds, and mutual funds.

Contributions to a custodial account are made with after-tax dollars.