What Is The Custody Account & Who Administrate This Account?
Custody account is really any type of financial account that one person opens and maintains for another person. In most cases, it’s a brokerage account or savings account that an adult controls for a child under the age of 18. You should think twice before going custody account, make sure it is right for you. One of the biggest factors in such a decision is examining the impact of these accounts on financial aid. Assets in a custodial account will count as a child’s assets when that child applies for financial aid. If you have a lot of money in the account, your child could miss out on thousands in potential aid. Once the child is of 18 years old, he or she assumes ownership and can control the account how he or she wishes. A Custody account is a great way to save up for your child’s future. That’s the case whether you’re stockpiling cash for higher education or otherwise. You’ll know that while your child grows, he or she will have some money maturing as well. The tax be...