Understanding the Role of a Legal Custodian

Have you ever heard of a legal custodian? The suggestion to find out what that means is not meant to drag you into a law school class, but is instead equated to the art of budget living. Both concepts are mindset-specific; by making the choice to educate yourself regarding the terms and tools involved with a legal custodian, you equip yourself to handle real world finances. When you know something, you wield power in the form of knowledge.

Custodianship is basically akin to guardianship, although it’s a little more relaxed in terms of permanently being in place. Custodianship is required for most times of inheritance for minors or those who are not financially savvy adults. The legal custodian is responsible for handling the money that is left in an account for someone who cannot handle funds. This type of account is normally referred to as a uniform transfers to minors account. Account funds should only be used to benefit the minor. They can only be used with a certain level of discretion, unlike what you might see in the wicked stepsister stories.

Custodianship is a little bit like having a budgeting system for your money. You choose where the money goes and what the money is used for. If you need to make a decision on the amount of money that is used for something, then you have to delve into the paperwork to figure out how much money belongs where. Essentially, being a custodian means having the records of the account and the authority to decide what is done with the funds. It entails making choices for someone else’s money.

You have the option to be your own custodian. It’s kind of like being your own banker in that respect. You can use budget lines to dictate where your money goes. You can even keep it all under a safe in your house, and it can be broken down into categories, such as groceries, Christmas, clothing, etc. This is how budgeting works. You control where your money goes and how much of it is used for a particular thing. The difference being, of course, that the bank is not going to allow you to pull that money out for reasons it has not given you access to the cash. If you have a bill that needs to be paid, you can’t just pull the money out of the bank account and onto your credit card to pay for the bill. Instead, you have to wait for the bank to say, ‘yes you can use that money this way,’ or you have to find another way to pay that bill. Get it?

You have the right to know what is going on with your money, and you also have the right to decide how your money will be used. When you are a custodian, you have the right to determine what funds to use and when they can be used. The law gives you some rights, such as:

• You can find out more about what rights you have under a comprehensive legal custodian definition and how long they may last by consulting primary resources for legal advice, for example.

Understanding what legal duties you have as a custodian for someone allows you to avoid a few problems when it comes to both financial and real life. You know what you can do and what the person under your care can do regarding their finances. You know what the bank can do and when it can and cannot share information. In return, by understanding these legal rights and limitations better, you are able to make better choices in regards to your money.

Thankfully, there are plenty of resources online to help you learn how to organize your financial paperwork on a budget. The main point is to keep things organized by time, such as daily, monthly, quarterly, annually, and even by event. I have listed a few online resources below. The idea is not to overwhelm you with a long list of links, but merely to provide one solid resource for you to check out and copy the process.

Legal assistance can be necessary for various reasons, and often the financial advice one can get goes right along with it. There are lawyers that offer free consultations, and this is one of the ways that you can get the proper legal advice for your money matters. There are also other resources you can consult, including your local courthouse as well as websites that include sources such as information about a legal custodian, banking, finances, and other important money management topics.

Knowing how to make good choices is the most important part of getting your finances organized in your own life and your finances and debts overseen for a child or another adult under your care. Take the time to research the details of what you need to do for your money and your legal obligations as a custodian.