custodial account
1
6.1
- noun
- /kəˈstoʊdiəl əˈkaʊnt/
- Specialized
:
cuenta de custodia
- Many grandparents choose to open a custodial account as a gift for their grandchildren's future.
- money in a custodial account
- custodial account for a child
- 529 savings plans; custodial accounts
Examples
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A custodial account helps manage funds for minors.
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Many parents opt for a custodial account because it is managed by a guardian until the child reaches legal age.
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Funds in a custodial account legally belong to the minor but are overseen by an adult until the child comes of age.
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The parents set up a custodial account to save for their daughter's college expenses.
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She opened a custodial account for her son.
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A custodial account allows parents to manage their child's savings until they turn 18.
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You can establish a custodial account to help save for your child's education.
How Controlled
- Specialized
3
4.4
- Specialized
1
6.1
- Specialized
4
5.5
Surface Forms
Morphology
The phrase 'custodial account' is compositional: 'custodial' denotes responsibility for safekeeping and 'account' denotes a record or service for holding funds, so a learner who knows both words can infer an account where a third party keeps or manages assets. Although used in specific domains (finance/cryptocurrency), the underlying custody+account logic is straightforward and cross-linguistically common, making the meaning accessible to a B1 learner.
Etymology
Custodial account comes from custodial, which links to the word 'custody' meaning care, and account as a place to keep money. Imagine an adult holding a child's piggy bank and keeping it safe until the child is old enough. That's why a custodial account is money that legally belongs to the child but is managed by an adult until the child comes of age.