Minor Account Information
ATM Card: A minor may have an ATM card on their statement savings account as long as the parent/legal guardian signs as the responsible party.
Debit Card: A minor may have a debit card on their student checking account as long as the parent/legal guardian signs as the responsible party.
•On accounts owned individually or jointly by a minor, deposits and withdrawals are allowed without requiring permission from the parent/legal guardian. If the parent wishes to eliminate the minor’s ability to withdraw, he/she may want to consider opening a trust account with the minor as beneficiary, which means they will not have the capability to withdraw.
•If a minor owns an account jointly, only the account owners can withdraw from the account. The parent has no right to the funds unless he/she is a joint account holder. The parent may come in with the minor, and then we would allow the minor to withdraw.
•If a minor owns an account individually and the parent comes in wishing to withdraw from the minor’s account, he/she must prove that he/she is the parent or legal guardian.
Uniform Transfer to Minors Act (UTMA) The Uniform Transfer to Minors Act is a state law that allows an adult (custodian) to make an irrevocable gift to a minor. The custodian is obligated by law to use the money for the sole benefit of the minor, and when the minor reaches age 21, the custodian must turn the money over to the minor. Prior to January 1, 1987, the law stated that the funds must be given to the minor at age 18. Only the custodian can transact business on the account and signs a final withdrawal or transfer slip when the funds are given to the child at age 21. There can only be one custodian and one minor assigned to an account. If the minor dies before the age of 21, the money belongs to the minor’s estate.
In the event that the custodian dies, a successor custodian must be appointed by the Court. The Successor Custodian is not automatically the parent/guardian of the minor.
Totten Trust, also known as an “Informal Trust” or “Unwritten Trust.” These trusts may be set up with one or two trustees, for the benefit of one party (the beneficiary). The trustees have legal title to the money and if more than one, either trustee or the survivor trustee may withdraw funds and transact business on the account. Until death of the trustee(s), the beneficiary has no right to withdraw funds from the account. Upon the death of all the trustees, the beneficiary may then close out the account, even if the Personal Representative is looking for the money to settle the estate. The money is still part of the deceased estate for tax purposes.