custodial account

Englisch - Englisch

Definition von custodial account im Englisch Englisch wörterbuch: Shares in mutual funds are held by a custodian - must be a bank (including an insured federal credit union) - or a registered investment adviser, with IRS approval; An account established for the safekeeping of plan assets, but with no discretion or responsibility for managing those assets; Account controlled by the custodian rather than the owner of the assets Primarily used for retirement plans, minor children or by an employer for the benefit of an employee; An account opened on behalf of another person Commonly used when a parent opens an account for a minor child; An investment vehicle that allows you to invest in mutual funds available through the plan; An account maintained by a Servicer specifically for the collection of principal and interest, Insurance Proceeds, Liquidation Proceeds and other amounts received with respect to Mortgage Loans that are being serviced for Wachovia; Generally, an account that a parent creates and manages for a minor, typically at a bank or brokerage firm, until the child is a certain age; An account for the benefit of a minor with an adult as the custodian; By law, children can not own securities (stocks, bonds, mutual funds) directly A common solution is to set up a custodial account Depending on the state in which you reside, the account will be set up as Uniform Gift to Minors Act account (UGMA) or a Uniform Transfers to Minors Act Account (UTMA) A custodian can be any adult who will have fiduciary responsibility for the child up to either age 18 or 21, depending on the state All money in the account must be used to benefit the minor After 18 or 21 (depending on the state), the child controls the money; A bank account that a lender must establish to hold the funds of others -- the mortgagor and Fannie Mae -- as opposed to any account established to hold the lender's corporate funds (Source: FNMA Selling Guide, Glossary) A Custodial Account is a Demand Deposit Account established and maintained by a Servicer at an Eligible Depository, into which Principal and Interest Payments or Escrow Funds, as the case may be, are deposited The types of Custodial Accounts are (1) Disbursement Clearing Custodial Accounts (2) Escrow Custodial Accounts (3) Principal and Interest Custodial Accounts (Source: FHLMC Single-Family Seller/Servicer Guide, Glossary); An account that allows a custodian to hold securities for the benefit of the owner The custodian collects investment income for the owner, executes the owner's buy or sell orders, and keeps records of all transactions, among other duties; An account in which a custodian enters trades on behalf of the beneficial owner, often a minor See also Custodian; A bank account for the deposit of another personâs funds One example is a real estate tax escrow account; A bank account for the deposit of another person's funds One example is a real estate tax escrow account; a brokerage firm account that parents have created for a minor