I would like to know about putting my account under my childen's name. Do I use POD or AND, or what? What is the difference in the working of the bank accounts? What is the best way to put money in my name and my children who are all minors?
Untitled
There are several alternatives available.
A joint account (you AND someone else) will allow both joint owners access to the funds. Each owner is responsible for the account, and in most cases, if one owner overdraws the account, both owners are responsible for it. When one of the owners dies, the surviving owner or owners take ownership of the funds. Many banks will not make an account joint with a minor. Some state laws don't permit minors to enter binding contracts.
A custodial account set up under your state's Uniform Transfers to Minors Act (Uniform Gifts to Minors Act in Vermont and South Carolina) is appropriate for some customers who are making an irrevocable gift or transfer of funds to a minor, but want the funds under the control of an adult custodian until the minor reaches the age set out in the state statute, 18 or 21 or somewhere between (check how your state handles it).
A Payable on Death (POD) account would remain your property (the POD designation can be changed or revoked at any time) during your lifetime, and is transferred by law to the named beneficiary on your death.
The only way to determine which of the alternatives is best for you is to sit down with a bank representatives and explain what your goals are. Get a list of the alternatives the bank offers, and decide which is best. You should check with a couple of banks to see what choices are offered.
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There are several alternatives available.