Account In Trust

AAA

DEFINITION of 'Account In Trust'

An account that is managed by one party for the benefit of another. It is sometimes called an account held in trust, and the trust relationship can be either explicit or implied. Accounts-in-trust are typically set up for minors, and transfer of ownership will occur when the minor reaches legal age.

INVESTOPEDIA EXPLAINS 'Account In Trust'

The person managing an account in trust is a fiduciary to the ultimate owner or beneficiary of the account. A good example of such accounts are accounts managed by adults for minors, such as Uniform Transfers to Minors (UTMA) accounts. The term can also be used generically for any trust account, regardless of whether there is a formal trust agreement.

RELATED TERMS
  1. 5 By 5 Power In Trust

    A common clause included in many trusts allowing for beneficiary ...
  2. Account Executive

    This term refers a person who has primary responsibility for ...
  3. Custodial Account

    1. An account created at a bank, brokerage firm or mutual fund ...
  4. Fiduciary

    1. A person legally appointed and authorized to hold assets in ...
  5. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
Related Articles
  1. Don't Forget The Kids: Save For Their ...
    Savings

    Don't Forget The Kids: Save For Their ...

  2. An Estate Planning Must: Update Your ...
    Options & Futures

    An Estate Planning Must: Update Your ...

  3. Skipping-Out on Probate Costs
    Retirement

    Skipping-Out on Probate Costs

  4. Saving Money With A Private Annuity ...
    Retirement

    Saving Money With A Private Annuity ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center