Custodial Arrangement

A custodial arrangement refers to a formal agreement where one person, called the custodian, manages assets or property on behalf of another person, often a minor or someone unable to manage those assets themselves. This arrangement ensures that the assets are handled responsibly and in the best interest of the beneficiary. It typically involves legal responsibilities, including managing, protecting, and using the assets according to specific rules or instructions outlined in the agreement. Custodial arrangements are common in contexts like guardianships, trusts, or parent-guardian setups for children's finances.