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ianc70
New Member

What is the difference between deposit and custodial foreign financial accounts?

 
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KarenJ
Intuit Alumni

What is the difference between deposit and custodial foreign financial accounts?

Custodial accounts are those that the bank is holding for the person and depository accounts are those that the bank must be responsible for (savings and checking accounts.

A "custodial account" is an arrangement for holding a financial instrument, contract, or investment (including corporate stock, a note, bond, debenture or other evidence of indebtedness, a currency or commodity transaction, a credit default swap, a swap based upon a nonfinancial index, a notional principal contract (as defined in §1.446-3(c)), an insurance or annuity contract, and any option or other derivative instrument) for the benefit of another person. Reg. §1.1471-5(b)(3)(ii).

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1 Reply
KarenJ
Intuit Alumni

What is the difference between deposit and custodial foreign financial accounts?

Custodial accounts are those that the bank is holding for the person and depository accounts are those that the bank must be responsible for (savings and checking accounts.

A "custodial account" is an arrangement for holding a financial instrument, contract, or investment (including corporate stock, a note, bond, debenture or other evidence of indebtedness, a currency or commodity transaction, a credit default swap, a swap based upon a nonfinancial index, a notional principal contract (as defined in §1.446-3(c)), an insurance or annuity contract, and any option or other derivative instrument) for the benefit of another person. Reg. §1.1471-5(b)(3)(ii).

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