A “custodial account” is an arrangement for holding a financial instrument, contract, or investment (including corporate stock, a note, bond, debenture or other evidence of indebtedness, a currency or commodity transaction, a credit default swap, a swap based upon a nonfinancial index, a notional principal contract (as …
Do you have to report custodial accounts on fafsa?
As noted in the FAFSA instructions, custodial accounts must be reported as investments on the FAFSA and are reported as assets of the account owner, not the custodian.
How are financial assets reported in a custodial account?
In the case that Financial Assets are held in a Custodial Account, any income, and gross proceeds from the sale or redemption of such Financial Assets are reportable by the Custodial Institution maintaining such Custodial Account, regardless of the account to which such amounts are paid or credited. 5.
What are the different types of custodial accounts?
Two Types of Custodial Account. Custodial accounts come in two basic varieties: the Uniform Transfers to Minors Act (UTMA) accounts and the older Uniform Gift to Minors Act (UGMA) accounts. Their main distinction lies in the kind of assets you can contribute to them.
How old do you have to be to have a custodial account?
What Is a Custodial Account? The term custodial account generally refers to a savings account at a financial institution, mutual fund company, or brokerage firm that an adult controls for a minor (a person under the age of 18 or 21 years, depending on the laws of the state of residence).
Can a foreign account be reported on Form 8938?
If a financial account, such as a depository, custodial or retirement account, is held through a foreign branch or foreign affiliate of a U.S.-based financial institution, the foreign account is not a specified foreign financial asset and is not required to be reported on Form 8938.
