Skip to content
GeoDataVision
Thread Options Tools
#639 - 02/11/01 12:05 AM Minor Checking Account
Ann Offline
Platinum Poster
Joined: Jul 2001
Posts: 556
South Carolina
In a discussion on opening a account (checking, saving, CD) for a minor child it was discussed on wether to use the UTGMA or style as John Doe, a minor and Mary Doe or John Doe. What would be the best way to style account for a minor and not use UTGMA
styling. It seems that the child will not sign the signature card, only parents.
Thanks for the help

Return to Top
General Discussion
#640 - 02/11/01 12:12 PM Re: Minor Checking Account
A D Virr Offline
Gold Star
Joined: Oct 2000
Posts: 398
Derry, NH
Ann; I'm not sure what state you're in but I would look first to your state banking laws. In my experience minors have been allowed to open checking, savings, and CDs only with a parent or guardian as joint co-owner of the account. We offer student saver accounts in the student's name. On the other hand, I have known other banks to require the person to be 18 or older. That's a matter of policy in my opinion. I would also consider for whom you would do this for - the minor child of a known, established customer or anyone off the street. The UTMA accounts don't really seem suited for the purpose of allowing a minor to utilize a checking or savings account.


Anyhow - that's what I think, perhaps others will have different opinions.

------------------
Allan D. Virr, CRCM

_________________________
Allan D. Virr, CRCM,CRP
Compliance Audit Solutions, LLC

Return to Top
#641 - 02/11/01 09:53 PM Re: Minor Checking Account
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,503
On the Net
I agree that you want to check out the state law issues. Also consider who will have ownership of the funds, who is liable for taxes on the interest and is FDIC insurance coverage an issue? Once you anwser these question and consider state laws, you should have an answer.

Make sure you've reviewed Mary Beth's 60 Second spot on this issue.

------------------
Andy Zavoina
Opinions stated are not necessarily that of my employer.

_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#642 - 02/12/01 01:41 AM Re: Minor Checking Account
Ann Offline
Platinum Poster
Joined: Jul 2001
Posts: 556
South Carolina
Just an added note to the question on minor account.
We are in Texas and the SSA # is the childs.
Thanks

Return to Top
#643 - 02/12/01 03:31 PM Re: Minor Checking Account
De Vonne Offline
Member
Joined: Jan 2001
Posts: 84
Wouldn't it be rather risky to open a checking account for a minor? It occurs to me that a minor cannot enter into a legally binding contract - which could arguably include checks, debit card purchases, stop payment agreements, etc. Where would your liability be?

[This message has been edited by De Vonne (edited 02-12-2001).]


Return to Top
#644 - 02/12/01 03:40 PM Re: Minor Checking Account
Al Miller Offline
Diamond Poster
Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
It is true that state laws allow minors to void CERTAIN contracts, but not all. In CA, a minor cannot void a deposit account agreement. Since the Deposit Account Agreement spells out requirements for stop payments, etc., those are all part of the deal.

------------------
Al Miller, CRCM
Fremont Bank (CA)
(510) 790-5825
(510) 505-5211 FAX

Opinions expressed are my own and not necessarily shared by my employer.

_________________________
Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

Return to Top
#645 - 02/12/01 06:16 PM Re: Minor Checking Account
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,503
On the Net
Texas also allows minors to own accounts. If the parent or guardian wants to be on it however, they have to be allowed.

------------------
Andy Zavoina
Opinions stated are not necessarily that of my employer.

_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#646 - 02/12/01 08:23 PM Re: Minor Checking Account
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,684
Cape Cod
I should let Texans toss this one around, but I noted in Ann's initial post that the kid won't be signing the deposit agreement. If that's the case, the only way you'll get the kid's SSN on the account will be with an UTMA arrangement. And then, it's not a voidable contract in any state, because the kid isn't a contracting party. Notice that in the UTMA scenario, the kid has ownership but no withdrawal/transaction rights. It's hands off until the custodian hands the moolah over.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#647 - 05/23/01 02:14 PM Re: Minor Checking Account
Mary Beth Guard Offline
Platinum Poster
Mary Beth Guard
Joined: Oct 2000
Posts: 797
Oklahoma City, OK
Check out our 60 Second Solution on UTMA accounts. Also, for more information, there are links on the Launch Pad to UTMA information.

60 Second Solutions

Launch Pad


Return to Top