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What is the difference between a guardian account and a custody account?

Custodial and guardian accounts are similar, but have a few major legal differences. The primary creators of both accounts are often parents or grandparents of the account owner, who is known as the beneficiary. Custodial accounts are available at most banks and credit unions for parental control of their minor children's accounts.

What are Guardian accounts & Custodial accounts?

Guardian accounts and custodial accounts are two forms of financial accounts in which one person--the guardian or custodian--manages the account funds for the benefit of another person. Guardian accounts must start with formal court action naming a legal guardian, who then manages the money for the benefit of someone known as the "ward."

What is a guardian account?

Guardian accounts are also for those unable to manage their funds, but require a court order to create. Parents, grandparents and family members set up these accounts for minor children. Once the child reaches the age of 18 or the legal age of majority in your state, the account becomes hers alone.

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