Can I Deposit a Check Made Out to My Child?

Depositing a check made out to a minor child involves specific procedures and considerations. Understanding these steps helps parents or guardians navigate the process efficiently. This guide clarifies the necessary actions, from endorsing the check to choosing the appropriate account.

Endorsing a Check for a Minor

Endorsing a check made out to a minor is the first step before deposit. This involves signing the back of the check in a designated area. Since minors cannot legally enter financial agreements independently, a parent or legal guardian must endorse on their behalf.

A common method for endorsing a minor’s check is to write the child’s name, followed by “minor,” and then the parent’s or guardian’s name with their relationship, such as “parent.” For example, the endorsement might read: “[Child’s Name], minor, by [Parent’s Name], parent.” Some banks may also suggest adding the account number. Banks generally require the parent or guardian’s signature to validate the endorsement, even if the child can write their name. It is advisable to contact the bank for their specific endorsement policy, as requirements can vary.

Account Options for a Child’s Check

Selecting the appropriate bank account is a significant consideration when depositing a check for a minor. Several account types cater to children’s funds, each with distinct features. Understanding these options helps ensure the money is managed effectively for the child’s benefit.

Custodial accounts, established under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), are widely used for minors’ funds. In these accounts, an adult serves as the custodian, managing the assets until the child reaches the age of majority, which is typically 18 or 21, depending on state law. Once funds are deposited into an UGMA/UTMA account, they are considered an irrevocable gift to the child and must be used for their benefit. These accounts can hold various assets, including cash, stocks, and mutual funds, with UTMA accounts often allowing for a broader range of assets like real estate.

Joint accounts, where a parent or guardian shares ownership with the child, offer another option. Both the parent and child have access to the funds, though the adult can supervise activity and impose limits. While convenient, particularly for older children learning money management, joint accounts mean both parties have full access, and the child’s funds could be exposed to the parent’s creditors. Some banks may also allow individual accounts for older minors, often requiring a parent or guardian to open the account on their behalf. Depositing a check made out to a child directly into a parent’s personal account is generally not permitted by banks due to legal ownership issues, unless the parent’s name is also on the check.

Depositing the Check

Once the check has been properly endorsed and an account determined, the next step is the deposit. The method chosen can influence the immediate availability of funds and the documentation required.

Deposits can typically be made in person at a bank branch, through an ATM, or via mobile check deposit. For in-person deposits, the parent or guardian will usually need to present their identification, and sometimes the child’s identification or birth certificate, especially if it’s the first deposit into a new account or if the bank requires additional verification of the minor’s identity. Banks may also have specific policies for checks made out to minors, sometimes requiring a parent to be present even if the minor has an account.

Mobile check deposit offers convenience, allowing funds to be deposited by taking photos of the endorsed check. However, some banks have stricter endorsement requirements for mobile deposits, and certain third-party endorsements, like those for minors, might not be eligible for mobile deposit. Funds deposited via any method are subject to verification and may not be immediately available, with hold times varying based on the check amount and bank policy, typically ranging from one to five business days for non-government checks. It is advisable to confirm specific bank policies regarding deposit methods and fund availability for checks made out to minors to avoid any delays or complications.