A "custodial account" is on account opened on the behalf of a minor by an adult who acts as custodian. Custodial accounts are typically established with a bank, securities brokerage firm, or mutual fund. Cash or assets can be transferred to the custodial account, and there may be some tax advantages to establishing a custodial account. For example, accounts for children are often open as custodial accounts under state laws such as the Uniform Transfers to Minors Act or similar state statutes.