Opening Accounts for Minors

With Mary Beth Guard and John Burnett

Opening Accounts for Minors

With Mary Beth Guard and John Burnett
  • 1 Video
  • 3 PDFs
  • 2.0 hrs
Course description

ICB Credit: 2.5 CRCM

When to accept deposit accounts for minors and how those accounts should be established are questions of policy that every bank has to address. Babies, kids and teens, after all, are an increasingly important part of the consuming public, and the demand for bank accounts that meet those minors' needs in a safe and sound manner will only increase.

When a minor has money, there's not one universal "right way" to structure a deposit account. Instead, the ideal way to set up the account will depend upon a number of factors, from the source of the funds to the age of the individual and the intended use of the money. Participants in this two-hour webinar will come away with all the important issues covered - the types of account ownership available, the benefits and ramifications of setting accounts up under the Uniform Transfers to Minors Act, who controls each type of account, what minors' accounts are typically used for, and how they're sometimes abused. Mary Beth Guard and John Burnett will equip you with the information you need to style accounts correctly, obtain data required for CIP purposes, and deal with a variety of common scenarios that often arise with minors' accounts.

In this session, Mary Beth and John will cover:

  • when you don't want to (or can't) use the UTMA
  • circumstances making a UTMA account an ideal choice
  • the pros and cons of opening accounts in minors' own names
  • joint accounts with minors
  • the use of indemnification agreements to protect the bank
  • the pitfalls of "minor by" account styling
  • the need for internal policy and guidelines on minors' accounts
  • important information to gather before setting up the account
  • what you can do to avoid potential problems down the road
  • proper styling and the correct TIN to assign to the account
  • whose information you gather for CIP purposes
  • custodian and successor custodian issues
  • bank responsibilities on minors' accounts
  • inappropriate activity and what can be done about it
  • common misconceptions
  • the effect of the custodian's or minor's death
  • the effect of garnishments and/or levies
  • custodians and powers of attorney
  • the rights of the minor
  • special state law "twists"
  • what happens when the age for UTMA release is reached

Who Should Attend:
This presentation is designed for new account, teller, and other front line personnel.

Course Curriculum

Video
123:55
Opening Accounts for Minors
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Materials
Materials
Slides
Questions and Answers
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Instructor

Mary Beth Guard  and John Burnett
Mary Beth Guard and John Burnett

Mary Beth Guard currently serves as Executive Editor of BankersOnline.com, CEO of Glia Group, Inc. and Executive Editor of BankingQuestions.com. Since graduating from law school in 1980, Mary Beth has focused her work almost exclusively on the banking industry. Previously, Mary Beth served as EVP/General Counsel and COO for the Oklahoma Bankers Association, EVP of Specialized Services for Thomson Financial Publishing, and General Counsel for the Oklahoma State Banking Department. Mary Beth is on the advisory board for Bankers' Hotline. She has presented training programs for virtually every major national financial industry association, as well as more than a dozen state bankers associations and a host of other organizations. In addition, Mary Beth has written more than a thousand banking-related articles and is a BOL Guru.



John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking, and is also a graduate of the BAIs and the Massachusetts Banker Associations Schools of Banking.

John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company.

John joined Glia Group, Inc. and the BankersOnline.com team in June, 2004. He is a frequent presenter of BOL Learning Connect webinars, and at BOL Conferences events.

He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and a former member of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force as Regulation DD was being written, and has served on several ABA and Massachusetts Bankers seminar panels.