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#305715 - 01/19/05 10:26 PM In Trust For Deposit Account for Adults
Snowgirl Offline
Platinum Poster
Joined: Sep 2003
Posts: 729
We have a customer who wants to open a CD in her daughter's name & SS# (who is age 24) but not have her be a signer. She wants the account to say Daughter Doe in trust by Mommy Doe. Can we do this and not have the daughter be a signer only the mother? Thanks!

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Operations Compliance
#305716 - 01/19/05 10:35 PM Re: In Trust For Deposit Account for Adults
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,685
Illinois
The only way that can work is if the mother has been appointed as a legal guardian by the courts because the daughter has been declared legally incompetant. She would have to provide court papers to support this. If it's the daughter's money that mom is simply trying to keep her from spending, sorry, she's of legal age and mom can't open an account in someone else's name.
If my parents opened an account in my name (I'm 29) the only reason they would have was to stick the income tax on the intrest to me, and trust me, I'd would not be too happy about that.
If mom's reason's are genuine concern for her daughter, suggest opening the CD with a 2 signatures required clause. That way the daughter cannot withdraw the funds without mom's signature as well.
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#305717 - 01/20/05 10:04 PM Re: In Trust For Deposit Account for Adults
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
If the concern is not about taxation of income, perhaps this customer could benefit from a POD account. She would be the owner and daughter would receive the funds on Mom's demise.
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BankersOnline.com
Fighting for Compliance since 1976
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