How to Deposit a Check Made Out to a Child

Receiving a check made out to a child raises questions for parents or guardians. Minors generally lack the legal capacity to conduct financial transactions independently, so depositing such a check requires specific banking procedures. Understanding these requirements helps ensure the funds are properly secured and accessible for the child’s benefit. This guidance clarifies the steps involved, from identifying who has the authority to deposit the check to completing the transaction.

Understanding the Role of the Depositor

Minors do not possess the legal authority to deposit checks. An adult with legal authority must act on their behalf. This includes a parent, a legal guardian, or a designated custodian for the child’s financial assets. The adult depositing the check assumes responsibility for managing these funds according to legal and ethical guidelines.

If the check is for a custodial account, such as those established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA), the named custodian is the authorized individual. The custodian manages the assets until the minor reaches the age of majority, which varies by state (between 18 and 21 years old). Knowing who can legally act on a minor’s behalf is essential for any deposit.

Choosing the Right Account for Deposit

Choosing the right bank account is important when depositing a check for a child. A common option is a custodial account, established under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). These accounts allow adults to transfer financial assets to minors without needing a formal trust, with the custodian controlling funds until the child reaches adulthood. UTMA accounts offer broader flexibility, allowing for assets like real estate and intellectual property, while UGMA accounts are limited to financial assets such as cash, stocks, and bonds.

Another choice is a joint account where a parent or guardian is a co-owner with the minor. Both parties have access to the funds, though the adult maintains primary oversight. Some banks also offer minor savings accounts where a parent or guardian acts as the primary signatory or custodian, allowing the child to learn about saving under adult supervision. The chosen account must either already exist or be opened by the authorized party before the check can be deposited.

Preparing the Check and Required Documents

Proper endorsement of the check is necessary before deposit. The back of the check should be endorsed to indicate the deposit is for the minor’s account and by the authorized adult. A common format includes the child’s name followed by “minor,” then the adult’s name and relationship (e.g., “parent” or “guardian”), and finally the adult’s signature. For custodial accounts, the endorsement might specify, for example, “[Minor’s Name] by [Custodian’s Name], Custodian under the [State] Uniform Gifts to Minors Act.” Banks may also recommend adding “For Deposit Only” and the account number.

In addition to the endorsed check, the depositor should bring several documents. Valid photo identification for the depositor, such as a driver’s license or passport, is required. To confirm the relationship, the child’s birth certificate may be necessary. The child’s Social Security number and any relevant custodial account documents, if applicable, should also be available.

Completing the Deposit

With the check endorsed and all necessary documents gathered, the deposit can be completed through various methods. For an in-person deposit, the authorized adult presents the endorsed check and all supporting identification and account documents to a bank teller. The teller will verify the information and process the transaction, providing a receipt as proof of deposit.

Financial institutions also offer alternatives like ATM or mobile deposits. When using an ATM, the endorsed check is inserted, and the depositor follows on-screen prompts to complete the transaction, entering account details and the deposit amount. For mobile deposits via a banking app, the user takes clear photos of the front and back of the endorsed check, ensuring proper lighting and focus, then submits the images through the app.

After the deposit, funds are available within one to two business days, though some banks may make the first $225 available the next business day. Government checks, certified checks, or checks from the same institution can clear faster. Retain the deposit receipt and monitor the account to verify that funds have been credited and are accessible.