With deposit contracts used for benefit programs, the custodian collects staff funds through regular wage deductions and invests the money; all fees associated with these agreements are generally less than the fees that would be charged to individual investors. A career retirement plan would be an example of police custody. Many, if not most, companies charge a third party to manage such plans in order to recover payments from employers and workers, to invest the funds and to pay benefits. Deposit agreements are used for a large number of benefit programs such as IRAs and health savings accounts. As a general rule, the agreement describes the payment by the person who is paid to the custodian, who will ensure that the funds are held with a bank or other financial institution. Depending on the nature of the account, the custodian may not be held liable if the employer does not provide the worker with the corresponding means for the benefit. For example, if a business does not contribute to an old age savings plan, any losses are not the responsibility of the custodian. The worker, not the custodian, may have all records that confirm distribution on a tax-exempt basis. It could also be left to the worker, not the custodian, to determine what income taxes are due on distribution and whether there are tax penalties that could be imposed. The custodian may also not be required to withhold a portion of the distribution that would be used to cover the income taxes owed.

If the account holder were to die, the custodian could be responsible for the liquidation of the funds into the account and then impose the distribution of assets to the beneficiaries according to the parameters of the fraudster`s estate. Conservatory custody is an agreement in which you hold a property or property in the name of the actual owner (effective beneficiary). These agreements are usually concluded by public bodies or companies to manage different benefit programs.