Custodian Worksheet - Charles Schwab

Custodian Worksheet

You can use this worksheet to guide you and your beneficiary through the custodial account conversion
process. As important action dates approach, we hope you’ll find the worksheet helpful in making key
financial planning decisions.

Step 1: Prepare to discuss n Make sure that you have copies of recent account statements handy to share with your
the transition of the beneficiary. (You can download copies at Schwab.com.)
custodial account
n Schedule time for discussions with your beneficiary in advance of the account
termination date.

Step 2: Review your current n Discuss the original goal for the account (e.g., education): _______________________.
investment strategy with
your beneficiary n Review recent account statements and investing positions (e.g., stocks, bonds, mutual
funds, etc.).

n Explore any upcoming relevant topics, including the tax implications of gains and
losses, for the current year and in general.

Step 3: Review the current Payment Features
account features with your
beneficiary Any automatic payments set up for the account will automatically end on the account
termination date.

n Discuss whether any automatic payments should continue. Payment features can be
easily reestablished by the beneficiary after the account transition. Otherwise, you or
your beneficiary will have to make alternate arrangements for any continuing payments.

n If you use Schwab One®checks, make sure that any checks you write will have enough
time to clear before the account termination date.

n If any automatic payments are scheduled for immediately after the account termination
date, you may want to consider paying them early to avoid potential interruptions in
your payment schedule.

Automatic Payments from this Account

Complete this chart to list payments you’re currently making from the custodial account,
and share this information with your beneficiary.

Payment Features Payment to Payment Amount Frequency Used for
Tuition
Example: Schwab MoneyLink® USC $2,500 Biannually
withdrawal

Schwab MoneyLink
withdrawal(s)

Electronic/ACH
withdrawal debit(s)

Schwab One checks

Deposit Features

Any automatic deposits set up for the account from the Schwab MoneyLink®feature or
other entities will automatically end on the account termination date.

n Discuss whether any automatic deposits exist, and should be canceled, and whether
any new deposit features (such as Direct Deposit) should be established.

n Cancel any automatic deposits from an external source by contacting the source directly.
Automatic Deposits to this Account

Complete this chart to list automatic deposits currently directed to the custodial account.

Deposit Features From Amount Frequency
Example: Direct Deposit service Custodian’s employer $1,000 Bimonthly
Direct Deposit service
Schwab MoneyLink deposit(s)
Other Electronic/ACH deposit(s)

Step 4: Discuss your Two Options for the Beneficiary
beneficiary’s options for
handling the custodial Option 1: What Your Beneficiary Must Do Note
assets Convert the Account
Your beneficiary should complete You’ll receive an information
Note: We can’t accept Convert the account to a and return a Schwab One Custodial packet for your beneficiary that
forms signed or received Schwab One®brokerage Beneficiary Conversion Form as soon includes instructions and all
before the termination date. account in his or her as possible after the account necessary forms before the
name termination date. account termination date.

Option 2: What Your Beneficiary Must Do Note
Close the Account
Liquidate the assets Your beneficiary should complete and Your beneficiary may be subject
return a Custodial Account Beneficiary to tax on capital gains.
Transfer the assets to Distribution Form downloaded from
another financial schwab.com/custodial.
institution
This form must be accompanied by a
copy of your beneficiary’s identifica-
tion (student ID, state driver’s license
or passport).

Your beneficiary should complete and The distribution form allows
return a Custodial Account Beneficiary Schwab to reregister the
Distribution Form downloaded from account in the beneficiary’s
schwab.com/custodial. name in order to process a
transfer request received from
This form must be accompanied by a another financial institution. If
copy of your beneficiary’s identifica- this form is not completed, the
tion (student ID, state driver’s license transfer will be delayed.
or passport).
If positions are sold before the
Your beneficiary should also contact transfer, your beneficiary may be
the other financial institution to subject to tax on capital gains.
initiate the transfer process.

Step 5: Discuss the Account Events Related to the Termination Date
timing and impact of the
account termination date Changes for the Custodian Changes for Your Beneficiary
on the custodial account
On the Your account access will be Your beneficiary will become the
termination date for restricted. legal owner of the account assets.
custodianship
Still permitted: However, in order to transfer the
90 days after • sales of existing assets assets to the beneficiary, we must
the account ter­ receive transition instructions from
mination date for No longer permitted: him or her as soon as possible after
custodianship • withdrawals and new trades the termination date.
• deposits
• automatic payments and Schwab

One®check activity

Your account authorities and access If we don’t receive transition
to the custodial account will end. instructions from your beneficiary,
the account will be reregistered in
the beneficiary’s name, but will
remain restricted until we receive
instructions.

If we don’t hear from your benefi-
ciary, the account may eventually be
subject to the unclaimed property
laws of your state.

Step 6: Look to Schwab n Visit schwabmoneywise.com for guidance in your discussions with your beneficiary
for help about financial planning and money management.

Personal notes n Encourage your beneficiary to contact Schwab at 1-800-435-4000 with any questions.
n Check schwab.com/collegesavings for direction about paying for college.
n Go to schwab.com/custodial for more information about the account transition

process.

Use this section to keep track of any questions you have.

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COR 03291 (0807-6312)  MKT38646 (08/07)