How to Cash a Check Made Out to a Child

Receiving a check made out to a child can present a unique situation. Specific rules and procedures apply due to legal age restrictions concerning financial transactions. Understanding these requirements is important to ensure the check is processed correctly and the funds are accessible for the child’s benefit. This guide outlines the necessary steps and considerations for managing a check issued to a minor.

Gathering Necessary Information and Documents

Gathering information and documents is a primary step before cashing or depositing a check made out to a minor. The check must be original, properly filled out, and not post-dated to avoid processing delays. The parent or legal guardian needs to present valid government-issued photo identification, such as a driver’s license or passport. Some financial institutions may request a secondary form of identification, like a Social Security card or a major credit card.

Documentation for the child is also required, typically including their birth certificate and Social Security card, especially if opening a new account. Proof of the legal relationship between the adult and child is required.

A birth certificate often fulfills this for parents. For guardians, court documents proving legal guardianship are necessary to demonstrate authority.

Proper endorsement of the check is another crucial detail. The parent or legal guardian typically endorses the check on behalf of the minor. A common format involves writing the child’s name, followed by “minor,” then the parent/guardian’s name and relationship, such as “parent” or “guardian.” Adding the account number for deposit is also a good practice to ensure accurate processing.

Understanding Deposit and Cashing Options

One common option is depositing the check into an existing minor’s account, such as a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account. These custodial accounts are established for the minor’s benefit, with an adult managing funds until the child reaches adulthood, typically age 18 or 21, depending on state law. Funds in these accounts are the child’s property. While contributions are irrevocable, they can be used for expenses benefiting the child, not just educational costs.

Some banks allow depositing the check into a parent or guardian’s personal account, especially if the child does not have their own account. This requires proof of relationship and specific endorsement. This approach may have tax implications if the check amount, combined with other gifts from the same source, exceeds the annual gift tax exclusion ($18,000 per recipient for 2024 and $19,000 for 2025). Exceeding this amount requires reporting, but actual gift tax payment is rare due to a high lifetime exemption.

Cashing the check at the issuing bank is another option, even without holding an account there. The issuing bank may cash the check for a non-customer, but requires identification from the parent or guardian and potentially the child. A fee, usually $5 to $10, may be charged for this service. Contact the specific bank beforehand to confirm their policies and required documentation, as procedures vary significantly.

Completing the Check Transaction

Once documents are gathered and the preferred method determined, the transaction can proceed. When visiting a bank branch, the parent or guardian should present the fully endorsed check along with identification for themselves and the child, and proof of relationship documents. The teller verifies identification and documentation, and may ask questions to confirm the relationship and purpose of the transaction. This verification ensures compliance with banking regulations and safeguards funds.

For deposits via ATM or mobile app, limitations apply for checks made out to minors. Some banks allow mobile deposits into custodial accounts with specific endorsement. However, direct mobile deposit into a parent’s personal account for a check made out solely to a minor may not be permitted due to ownership and endorsement rules. These digital methods require an existing account for the minor or a joint account where the minor is a named party.

After the transaction, obtain and retain a receipt for personal records. If the check was deposited, fund availability depends on the bank’s policy. Some institutions place a hold on larger amounts or new deposits for a period, usually a few business days. This ensures funds are managed transparently and appropriately for the minor’s financial well-being.