Learn More - Click Here!

Thread Options
#1972931 - 10/29/14 11:45 PM Accounts for Minor Children
UTBPMOM Offline
Member
Joined: Sep 2005
Posts: 73
What are the pros and cons for allowing accounts opened for minor children by those other than the parents? Grandma Grandpa want to open accounts for grandchild. We currently do not allow this but no one seems to know why we don't

Return to Top
Operations Compliance
#1972977 - 10/30/14 01:33 PM Re: Accounts for Minor Children UTBPMOM
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
I'm sure someone will correct me if I'm wrong, but if memory serves (and it's been several years), I think that only a parent can legally verify the child's SSN.
_________________________
My Opinions Only

Return to Top
#1972985 - 10/30/14 01:47 PM Re: Accounts for Minor Children Skittles
Cape Codder Offline
Gold Star
Joined: Jul 2011
Posts: 413
Originally Posted By: Skittles
I'm sure someone will correct me if I'm wrong, but if memory serves (and it's been several years), I think that only a parent can legally verify the child's SSN.


That's my recollection, too, with the addition of "or legal guardian".
_________________________
Nothing difficult is ever easy.

Return to Top
#1973044 - 10/30/14 03:13 PM Re: Accounts for Minor Children UTBPMOM
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Assuming that you would only consider opening a UTMA for a minor child, those who can certify the TIN are:
* the child,
* a parent or legal guardian, or
* the custodian of the UTMA.

The UTMA is a bona fide legal structure where all the relevant questions are answered clearly in the statute; e.g. what happens if the custodian dies, what happens if the minor dies, when is the minor entitled to delivery, etc..

All the other junk accounts; e.g. "Minor-by," accounts are an exercise in pure foolishness where indecision and big customer relations problems hide behind small amounts of money.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#1974130 - 11/04/14 09:52 PM Re: Accounts for Minor Children UTBPMOM
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,593
Cape Cod
To expand on Ken's warning, those big problems typically continue in hiding and only rear their ugly heads when there's no one left at the bank to explain why the foolishness was permitted, or what the intent of the parties was.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z, John Burnett