What happens when a bank closes a custodial savings account in California? Does the adult or the child get penalized, since both SSNs were taken when the account was first opened? How does that work?
If you are referring to a bank decision to unilaterally close the account due to mishandling, overdrafts or other problems, the bank would file any report of the action using the custodian's name, inasmuch as the custodian is the only party involved in the management or mismanagement of the account. The bank is required to obtain the name and Social Security number of the minor for tax reporting reasons, but should not use that information to report an adverse closing of the account.
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If you are referring to a bank decision to unilaterally close the account due to mishandling, 