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Home >> Accounts >> Trusts
Setting Up Surprise Account for Minor
What type of account is there, where I can have money deposited directly for a six year old nephew with every paycheck, but not have the funds available to him or even have anyone know about it until he is eighteen, kind of like a surprise birthday/education account?
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 You can ask your bank about trust accounts. These can often be set up by the bank without an attorney, but you might want to reconsider the exact specifics. If no one knows it exists but you, if something happens to you, this money would likely end up being escheated to the state for nonactivity. You could have the parents establish a Totten Trust account where the child owns the funds, but has no access to it until he reaches the age of majority. The parents can access the funds though, on the child's behalf, or you may just want to open a savings account in your name. When the child is eighteen, you can give the money to him. This way, if you ever want to reconsider, you have ownership and control. In your Will, you can designate where this account goes and/or list the child as the beneficiary or payable to on death, on your account agreement.
Published on BankingQuestions.com 3/04/10
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