Overview

A custodial account is an account established by an adult — the custodian — to hold and manage funds or securities for a minor beneficiary until the minor reaches the age of majority. At Old National Bank, custodial accounts are designed to provide transparent oversight, account-level reporting, and convenient access to banking services while ensuring that assets are preserved for the intended beneficiary.

Why choose a Custodial Account?

Whether you’re saving for education, a first car, or simply building a financial foundation for a child, a custodial account offers several advantages:

• Control with Purpose: The custodian manages investments and withdrawals until the beneficiary reaches legal adulthood, ensuring assets are used as intended.
• Simplicity: Accounts are easy to open and maintain, with clear rules about deposits, transfers, and distributions.
• Financial Education: Custodial accounts are an excellent tool to teach children about saving, budgeting, and investing under adult supervision.
• Flexibility: Funds can be used for a wide range of beneficiary-related expenses, including education, health care, and extracurricular programs.

Key Features

• Account Types: Options include cash savings and investment custodial accounts to match different financial goals and risk tolerances.
• Personalized Service: Dedicated banking professionals provide guidance on account setup, investment selection, and long-term planning.
• Transparent Reporting: Regular statements and online access help custodians track performance, deposit activity, and distributions.
• Easy Funding: Fund the account through cash deposits, transfers from other accounts, or gifts from family members.
• Tax Considerations: Earnings may be subject to tax rules applicable to custodial accounts; custodians should review guidance as applicable to their situation.

How it Works

The custodian opens the account in their name for the benefit of the minor beneficiary. The custodian has fiduciary responsibility to manage the account prudently and in the best interest of the minor. Deposits, investments, and distributions must align with state and federal regulations governing custodial arrangements. When the beneficiary reaches the age of majority as defined by state law, control of the account is transferred to them.

1. Open the Account: Provide identification for the custodian and the beneficiary and complete required documentation.
2. Fund the Account: Make initial and ongoing contributions through deposits, transfers, or gifts.
3. Manage and Monitor: Choose investment options if applicable, review periodic statements, and keep accurate records of transactions.
4. Transfer at Majority: When the beneficiary reaches the specified age, deliver full control of the account to them according to state law.

Who Should Consider a Custodial Account?

Custodial accounts are suited for parents, grandparents, guardians, and other family members who want to set aside assets for a minor without establishing a trust. They are particularly helpful when:

• You want a straightforward, low-administration vehicle to save for a child’s future expenses.
• You prefer direct control over investments and distributions while the child is a minor.
• You want to introduce financial concepts to a minor as they grow, using real balances and accounts.

Security and Compliance

Old National Bank prioritizes the safety of custodial assets through robust account safeguards and regulatory compliance. Accounts are maintained under established banking standards with secure online access, multifactor authentication, and encryption to protect sensitive information. Custodial accounts are subject to applicable state laws and federal regulations, and the bank provides documentation and disclosures to help custodians understand their responsibilities.

Fees and Minimums

Fee structures and minimum balance requirements vary depending on account type and the services selected. Old National Bank provides clear fee schedules and can advise on cost-effective options based on the custodian’s objectives. Typical considerations include account maintenance fees, transaction-related charges, and any advisory or investment management fees if investment options are utilized.

Practical Tips for Custodians

• Set Clear Goals: Define the purpose of the account and plan contributions and investments accordingly.
• Document Everything: Maintain records of deposits, gifts, and expenditures to demonstrate prudent management.
• Engage the Beneficiary: As the child matures, involve them in account reviews to build financial literacy.
• Review Regularly: Periodically reassess investment allocations and the account’s alignment with your goals.

Getting Started

Opening a custodial account at Old National Bank is a straightforward process tailored to your family’s needs. The bank’s team can walk you through documentation requirements, help select the right account type, and explain fiduciary responsibilities so you can begin saving and investing on behalf of a beneficiary with confidence and clarity.