Magnetic fields play a crucial role at all stages of the formation of low-mass stars and planetary systems. In the final stages, in particular, they control the kinematics of in-falling gas from circumstellar discs, and the launching and collimation of spectacular outflows. The magnetic coupling with the disc is thought to influence the rotational evolution of the star, while magnetized stellar winds control the braking of more evolved stars and may influence the migration of planets. Magnetic reconnection events trigger energetic flares which irradiate circumstellar discs with high energy particles that influence the disc chemistry and set the initial conditions for planet formation. However, it is only in the past few years that the current generation of optical spectropolarimeters has allowed the magnetic fields of forming solar-like stars to be probed in unprecedented detail. In order to do justice to the recent extensive observational programs new theoretical models are being developed that incorporate magnetic fields with an observed degree of complexity. In this review we draw together disparate results from the classical electromagnetism, molecular physics/chemistry and the geophysics literature, and demonstrate how they can be adapted to construct models of the large scale magnetospheres of stars and planets. We conclude by examining how the incorporation of multipolar magnetic fields into new theoretical models will drive future progress in the field through the elucidation of several observational conundrums.(Some figures in this article are in colour only in the electronic version) 3.4. Difference between a spherical and Cartesian tensor approach 13 4. Magnetospheric accretion models with multipolar magnetic fields 14 4.1. Development of PFSS models and comparison with MHD field extrapolations 14 4.2. Potential field models of T Tauri magnetospheres with complex fields 16 4.3. 3D MHD models of T Tauri magnetospheres with non-dipolar fields 18 5. Summary and applications to outstanding problems 19 Acknowledgments 21 Appendix A. Relations between the equatorial and polar field strength for a multipole of arbitrary order l 21 Appendix A.1. Odd-order multipoles 21 Appendix A.2. Even-order multipoles 22 Appendix B. Electrostatic expansion using Cartesian tensors 22 Appendix B.1. The dipole term 23 Appendix B.2. The quadrupole term 23 References 24