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? asked in Business & FinancePersonal Finance · 5 years ago

What does "in trust for" mean on bank account when account is made for a child?

NOTE -- NO TROLLS / TROLLING......SERIOUS ANSWERS ONLY

Lets say that you have a baby, and want to make him/her a savings account, and I dont know if it matters when they are a baby/infant/toddler or any time from age 6/7 to 17. But anyways, you (aka parents) make the account for them.

1 -- Do all accounts have to say "In trust for (insert child's name here)"?? Or is there a savings account that does not require "in trust for (insert child name here)"? Maybe its the same thing??

2 -- What does "In trust for" means? Of course a baby, infant, toddler, or any child does not know how to handle a bank account so obviously the parents have to think for them on this one, so of course the parents have to go on the account with them.

3 Answers

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  • 5 years ago

    "in trust" in the U.S. at least, literally means that the account is owned by a Trust, being a legal entity, not a person. This could be true for anyone, doesn't have to be a minor.

    If you want to open an account for a child, you could open a custodian account, or simply open an account in your name, then when the child is of age, close the account, deposit the funds into a new account with the child's name on it.

  • ?
    Lv 6
    5 years ago

    The alternative is UGMA Uniform gift to minors act. It is supposed to protect the account from law suits. Unfortunately it often doesn't protect the account from the named adult.

  • wg0z
    Lv 7
    5 years ago

    Just tell the bank you want a custodial account.

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