Can Someone Open a Bank Account for You?

The question of whether someone can open a bank account on behalf of another person depends on specific circumstances and legal frameworks. The ability to do so is determined by factors such as the age of the individual for whom the account is being opened and the legal arrangements in place to grant authority.

Opening an Account for an Adult

When considering opening a bank account for another adult, two primary methods exist: establishing a joint account or utilizing a Power of Attorney (POA). Both options involve distinct legal implications and requirements for the account setup process.

Joint bank accounts are designed for shared ownership, granting all listed account holders equal access and control over the funds. Typically, all parties named on the joint account must be present during the opening process to provide consent and necessary signatures. Each owner possesses full transactional authority, including making deposits, withdrawals, and writing checks, often without requiring the other owner’s explicit permission for each transaction. Identification for all account owners, such as a driver’s license or passport, and personal information like Social Security numbers and current addresses are generally required for account establishment.

Alternatively, a Power of Attorney (POA) is a legal document that grants one individual, known as the agent or attorney-in-fact, the authority to act on behalf of another person, the principal, in financial matters. For bank account purposes, the POA must specifically grant the agent the power to open, manage, and transact on bank accounts. General POAs provide broad authority over financial and legal matters, while durable POAs remain effective even if the principal becomes incapacitated. To open an account using a POA, the agent must present the original, valid POA document, which should ideally be notarized and sometimes witnessed, along with their own government-issued identification. Banks will scrutinize the POA to confirm its validity and scope of authority, and some may require the principal’s identification as well, or even a meeting with both parties.

Opening an Account for a Minor

Opening a bank account for an individual under the age of majority typically requires the involvement of a parent or legal guardian. The account is usually established in the minor’s name, but the adult maintains control and oversight until the minor reaches a specified age.

Common account types for minors include custodial accounts, such as those governed by the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). These accounts are legally established for the minor’s benefit, with an adult designated as the custodian responsible for managing the assets until the minor reaches the age of majority, which varies by state, typically between 18 and 21. While UGMA accounts are generally limited to financial assets like cash, stocks, and bonds, UTMA accounts offer broader flexibility, allowing for a wider range of assets including real estate or other tangible property. Basic savings or checking accounts may also be opened jointly with a parent or guardian, providing an opportunity for financial education.

The documentation required for opening a minor’s account typically includes identification for both the parent or guardian and the minor. This often involves the adult’s government-issued photo ID and proof of address, alongside the minor’s birth certificate and Social Security number. Some financial institutions may also request the minor’s photograph. The specific requirements can vary by bank and account type, so it is advisable to confirm with the chosen institution beforehand.

Managing an Account for Another Person

Once a bank account has been successfully established, either for an adult or a minor, various mechanisms allow for ongoing access and management by another person. These arrangements define the scope of authority and responsibility for managing the account’s funds and transactions.

One common arrangement is designating an authorized signer on an account. An authorized signer has permission to conduct transactions, such as making deposits, withdrawals, or writing checks, but does not hold ownership of the funds within the account. This differs from a joint owner, who has full ownership rights. The account owner maintains legal responsibility for all activities conducted by the authorized signer and can limit their access or revoke their status at any time. Adding an authorized signer typically involves completing a bank form and may require an in-person visit with identification for both parties.

Individuals acting under a Power of Attorney or as a custodian for a minor’s account also have specific responsibilities and access mechanisms. A POA agent or custodian is tasked with acting in the best financial interest of the principal or minor, respectively. This often entails managing investments, making payments, and ensuring the proper use of funds according to the terms of the legal document. They can typically perform most banking activities, including checking balances, transferring funds, and paying bills. The extent of their authority is defined by the legal document that granted them the power, such as the POA or the custodial account agreement. Banks will require the relevant legal documentation to be on file to grant and verify this access.