Who is custodian of policy

The services provided by the custodian are typically documented in a service agreement between the plan administrator and the custodian; however, the trustee generally has control over what the custodian does and is responsible for their actions. It is important to know your responsibilities for your plan, how your plan is written and ultimately how it is being presented to third parties through items such as financial statements.

Take the time to read your documents and ensure your plan is being properly represented. Contact Beth Reho at breho cohencpa.

One final detail that all parents need to consider when arranging their life insurance policy is choosing an appropriate beneficiary or custodian. This means that should one parent die, the other parent will have the ability to manage the money left from the life insurance policy.

This is why you should always have a custodian chosen in the event that no parent is able to care for your child or children. Create a personalised content profile. Measure ad performance.

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A custodian or custodian bank is a financial institution that holds customers' securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks or other assets in electronic or physical form. Since they are responsible for the safety of assets and securities worth hundreds of millions or even billions of dollars, custodians tend to be large and reputable firms. In another sense of the word, a custodian may be appointed to manage the assets of a minor child.

Investment advisory firms routinely use custodians to safeguard the assets they manage for their clients. Most custodians offer related services such as account administration, transaction settlements, collection of dividends and interest payments, tax support, and foreign exchange management. The fees charged by custodians vary depending on the services that the client needs.

Many firms charge quarterly custody fees based on the aggregate value of the holdings. A custodian may have the right to assert possession of the assets if required, often in conjunction with a power of attorney. This allows the custodian to perform actions in the client's name, such as making payments or altering investments. In the U. Measure content performance. Develop and improve products. List of Partners vendors. The Balance Investing.

By Dana Anspach. Dana Anspach is a Certified Financial Planner and an expert on investing and retirement planning. Learn about our editorial policies. Reviewed by Thomas J. Article Reviewed October 17, Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, insurance portfolio management, finance and accounting, personal investment and financial planning advice, and development of educational materials about life insurance and annuities.

Learn about our Financial Review Board. Fact checked by Hans Jasperson. Article Fact Checked January 06, Hans Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. His research has been shared with members of the U.