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Home >> Special Situations >> Minors
Bank Failure and Guardian Accounts
My son has a court-appointed guardian account which he is not entitled to remove from the banking institution until the age of 18. If the bank fails this year, and is not bought out by another institution, what will become of his account? Will I need to petition the court to have it transfered to another institution?
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 In this scenario, the FDIC will issue a check payable to the owner of the account, whether it is the court or you, as guardian. If the deposit is controlled by the court, the court will have to arrange for its transfer to another bank. If the deposit is controlled by you as guardian under the court's directive, you should ask the court clerk to issue an order or request, depending on how your state handles such things, that the account be placed elsewhere.
If you are guardian and the court did not specify which bank would hold the account, you should be able to take the check from the FDIC to another bank to place the account there. Check with the clerk of the court to see if you will need to get a new appointment to be able to do that.
Published on BankingQuestions.com 10/02/08
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