We have a customer with a cd maturing for her son established as a minor by account. The son is no longer a minor; just bad with money. The mother wants to still have control over the money and use the son's social for tax reporting. She does not want the son to be able to transact on the account. Is there any way to establish this account for her? If so, what documentation would be required since the son is no longer a minor? If we say the mother ITF the son, can we use the son's social? what documentation is there for the ITF?

This is a problem with a "minor by account", as there is no such animal from a legal standpoint you are faced with these problems. If the mother currently has access to the account, the mother can withdraw the funds and open a new account without the son and dole out the money as she see fits (and the son could possibly sue her). Without some sort of guardian or cusotdial appointment, that is her only option. If this was a UTMA account, she would be bound by State law to turn over the money.

I understand what you are saying. But once the child no longer is a minor is there anyway to title the account so that the minor has no access rights, but the interest is reported in the minors social?

They may need to set up a trust account in order to accomplish what they want. The bank should never be giving out advice on how they need to structure accounts, that function should be limited to their attorney or financial advisor.

The bank should offer a variety of accounts. Minor accounts (if allowed under State law and the bank chooses to offer them), joint accounts (with a minor, again with the same caveat), UTMA and other offical custodial arrangements (guardianships, trusts, etc).

Trying to make something up for the customer that is not supported by State law is only going to lead to problems for all parties involved - including the bank.

On the other hand, since the "minor by" account was a complete fiction, continuing it after the child reaches majority really isn't any worse.

"Minor by" accounts are a 30 year pet peeve; rlcarey's critique is gentle to say the least.

Personally, I would discontinue the use of "minor by" accounts as you have the opportunties to do so. Obviously, you are not in a position of providing estate planning advice, but you could ask her if a POD account would serve her purposes.