Custodianship occurs when an individual or other entity takes control over another individual’s finances. Often, this is in the form of a Trust Account, which might need a separate EIN. Custodianship often happens when children inherit sums of money that they can’t manage on their own. The custodian will manage their money in their best interests until they are of age. Any money that goes to the child will go through the custodian rather than being directly controlled by the child.
Custodianship may also involve financial accounts managed by professionals, who take care of an individual’s money for the purposes of greater levels of growth. Whenever an individual or entity is caring for money on another person’s behalf, it’s a time of custodianship. Managing the funds in the individual’s best interests is an extremely important part of custodianship. A custodian can be found to be at fault if they did not do so. Most custodian banks are extremely large and trustworthy banks, because they need to be trusted to manage the money effectively. If you have a Trust and need a custodianship for it, you will need to obtain a Tax ID Number online using the official Trust Tax ID Number Application.