Why a Custodial Account?
Custodial accounts, set up under the Uniform Transfers to Minors Act, are managed by an adult (the custodian) for the benefit of a minor. A typical application would be a parent-custodian acting on behalf of a minor-child. Prior to the minor attaining age 21, the minor has no right to withdraw funds in the account. These accounts automatically terminate upon the minor’s attainment of age 21, when the custodian is required to transfer the proceeds of the account to the minor. Such an account may be set up for only one minor and may have only one custodian. All funds placed in the account constitute an irrevocable gift to the designated minor. The custodian has the obligation to use the funds in the account for the benefit of the minor in the manner the custodian deems advisable. The custodian must make this determination without regard to any legal obligation to support the minor, which the custodian may have otherwise.
How do I set up a Custodial Account?
Custodial accounts are much easier to set up than trusts. In fact, all that is necessary is for Beehive to place the following notation on the signature card: “(Name of the adult) as custodian for (name of minor) under the Idaho Uniform Transfers to Minors Act.” You can set up any of our savings or checking accounts as a custodial account. Compliance with the Uniform Transfers to Minors Act is the responsibility of the member. Learn more about how custodial accounts function under this Act by visiting The National Conference of Commissioners on Uniform State Laws, or by calling them at 312-915-0195 or emailing them at firstname.lastname@example.org.