Although many like the idea of constructing their own investment portfolios, few enjoy looking after the numerous details investing can entail. A Custodial account can free investors from such tedious tasks as keeping track of and depositing dividend and interest checks, entering transactions in a ledger, and keeping track of all of the 1099s that an investment portfolio might generate.
We can act as Custodian for such accounts and can relieve the tedium of attending to details that take up so much time. A Custodial account offers the benefits of accounting and safekeeping of securities, which are held in a “nominee name” to ensure privacy of ownership. The custodian collects all of the income generated, and can either hold it for reinvestment, or pay it out to the account owner. The proceeds from any security sales, bond or CD maturities are also collected. Quarterly statements are sent to the customer detailing all of the activity in the account for the period, and one 1099 is issued for all the taxable activity in the account.
A Custodial account also offers the advantage of using multiple brokers if that is what the account owner wishes. The custodian can also make bill payments with the approval of the account owner, at no extra cost.
To learn more, call Standard Bank at 866.499.2265, or contact us.