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What is a Custodial Account? - Definition & Rules

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

The person who manages the custodial account is the _____.

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1. The minor who legally owns the custodial account is the _____.

2. The Uniform Gifts to Minors Act (UGMA) allows minors to own an investment account and provides the mechanism to transfer an investment account to a minor without the need for a formal _____

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About This Quiz & Worksheet

Gauge what you understand about custodial accounts via these study tools. For the quiz, you'll be required to answer questions on key points like the person who is supposed to manage the custodial account and a minor who owns the account.

Quiz & Worksheet Goals

Determine how much you know about these key points of study:

  • The Uniform Gifts to Minors Act (UGMA)
  • One of the duties regarding the parties involved in these accounts
  • Investment income

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related lesson on custodial accounts
  • Knowledge application - use your knowledge to answer questions about the parties involved with these accounts and some characteristics about their responsibilities
  • Information recall - access the knowledge you've gained regarding investment income regarding these accounts

Additional Learning

With the lesson named What is a Custodial Account? - Definition & Rules you can learn more about these study points:

  • Defining key terms, such as beneficiary, custodian, and fiduciary
  • Rules associated with custodial accounts
  • Analysis regarding contributions
  • Taxes and withdrawals
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