Definition: Custodian

A custodian is the person designated to hold and manage property that is placed in a custodianship for the benefit of a minor beneficiary. Such property is called custodial property. A custodian is a fiduciary whose duties and authority is outlined in the Uniform Transfers to Minors Act.1

When a custodianship is created in a will, the testator may choose who he/she wishes to serve as custodian and state that preference in the will, as well as alternative custodians if the testator’s first preference is unable or unwilling to serve. A custodian appointed in a will may charge reasonable compensation and is entitled to reimbursement for reasonable expenses incurred. Such expenses are paid out of the custodial property.