custodian

noun

cus·to·di·an | \ ˌkə-ˈstō-dē-ən

Definition of custodian

: one that guards and protects or maintains especially : one entrusted with guarding and keeping property or records or with custody or guardianship of prisoners or inmates

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Examples of custodian in a Sentence

the custodian made his usual rounds of the building to make sure that everything was OK served as custodian of the prisoner until he could be turned over to federal authorities

Recent Examples on the Web

Treasury clarified Monday that U.S. companies or individuals could serve as custodians as another U.S. person or entity works to divest their holdings in Venezuelan bonds. — Samuel Rubenfeld, WSJ, "U.S. Guidance on Venezuela Sanctions Seeks to Clear up Confusion, Lawyers Say," 12 Feb. 2019 Jordan has grown critical of Israel due to a standstill in peace efforts with the Palestinians and differences over Jerusalem, where Jordan serves as custodian of Islamic shrines. — Alon Bernstein, The Seattle Times, "Israeli farmers concerned about Jordan ending land lease," 22 Oct. 2018 Banks, which act as trading partner, lender and custodian, once firmly held the upper hand. — Liz Hoffman, WSJ, "How Banks Lost the Battle for Power on Wall Street," 7 Sep. 2018 At one point, a custodian — not in the cast — wheeled a noisy bucket and mop through the action, causing the director to stop the scene. — Helene Stapinski, New York Times, "A View From the Barge," 16 May 2018 By 1983, the family was reunited in Baltimore and had moved to Columbia, where his father found work as a custodian. — Janene Holzberg, baltimoresun.com, "Author's Jamaican roots find fertile ground in Columbia," 6 Apr. 2018 Photo: Scott McCartney/The Wall Street Journal In Atlanta, sensors installed in paper-towel, toilet-tissue, sanitizer dispensers and plumbing fixtures alert custodians through an app to outages, leaks and overflows. — Scott Mccartney, WSJ, "Airports Try Stall Tactic: Better Bathrooms," 2 Jan. 2019 In her remarks, Hinckley said all but two custodians that applied with Alpha Building Maintenance Services will be rehired. — Meredith Colias-pete, Post-Tribune, "Resident at first Gary schools forum: 'Where do you come down in terms of obligations to the community?'," 11 July 2018 According to News12, a custodian who works at a nearby public school called 911 after seeing what happened. — Josh Magness, kansascity, "People steal from the pockets of unconscious man after a sudden attack, video shows," 28 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'custodian.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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17 Feb 2019

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The first known use of custodian was in 1602

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More Definitions for custodian

custodian

noun

Financial Definition of custodian

What It Is

A custodian is an institution or individual that can act as an agent and exercise legal authority over the financial assets of another individual or company.

How It Works

A custodian typically handles a variety of activities, including physically holding equities and bonds, settling purchases and sales, reporting the status of assets, tax compliance and reporting, and management of the client's accounts and transactions.

For example, a bank may act as a custodian for a customer's investment activities, moving funds into brokerage accounts, researching investment alternatives such as companies and funds which might be appropriate investment targets, instructing brokers to buy or sell securities, monitoring the investment activities within the account, and reporting account activity to the owner. The custodian may also prepare the necessary tax filings on behalf of the owner, based on the activities within the account.

Custodians may be appointed to hold control of assets of a minor or an incapacitated adult. An adult with legal status may act as the custodian for the accounts of a minor. For example, a common tax strategy is to give a financial gift to a minor when their tax rate is lowest. Under the Uniform Transfers to Minors Act (UTMA), an adult or parent establishes the account on behalf of the minor and serves as custodian, maintaining the legal authority and direction over the custodial account. When the minor becomes an adult, the custodian relinquishes his or her authority over the account.

The custodian role is often held by banks, law firms, or accounting firms which usually carry additional fees for the services.

Why It Matters

Custodian services are generally useful for absentee owners (i.e. owners who are not interested or able to be involved in the day-to-day management activities of their accounts), as well as complex transactions, management of substantial assets, timely reporting and compliance, and tax management strategies.

Source: Investing Answers

custodian

noun