A custodial account means an account created by a person on
behalf of someone else. For instance, a savings account created
by a parent for his/her minor child is a custodial account. A
custodial account is often created for the benefit of a minor.
Generally the custodian of a custodial account will be the
parent or legal guardian. But, where the parents are
unavailable, the custodian will be any individual who was pre-
selected by the parents or is appointed by the courts. In some
situations, a custodian can be an agent, bank, trust company, or
other organization. Such custodians are appointed in accordance
with the applicable law of the state. A custodial account can be
set up in the name of a child either with a bank or securities
company. The investments to a custodial account are made in the
form of mutual funds or other similar products offered by
regulated investment companies. A minor in whose name a
custodial account is created cannot transact the securities
without the permission of the custodian. He