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When to accept deposit accounts for minors and how those accounts should be established are questions of policy that every bank has to address. If you want to set up accounts for babies, kids or teens, you want to do so in a way that avoids problems and anticipates and answers questions.
It’s all about options, 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 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 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.
Questions and Answers