How to Endorse a Check for a Minor

Checks made out to minors can sometimes present a challenge for deposit or cashing. Unlike adults, minors generally lack the legal capacity to enter into binding financial contracts, which includes endorsing checks independently. This legal limitation means that a check written to a minor requires specific procedures to be properly handled by a financial institution. Understanding the correct endorsement process and the roles of authorized individuals is important to ensure the funds can be accessed without complications.

Understanding Endorsement Authority for Minors

Because minors lack the legal capacity to endorse checks independently, an authorized adult must act on their behalf when a check is issued in a minor’s name. The individuals generally empowered to endorse a check for a minor include a parent, a legal guardian, or a custodian of a Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) account.

A parent usually has inherent authority to endorse a check for their minor child, especially if the minor resides with them. Similarly, a legal guardian, appointed through a court process, possesses the authority to manage the minor’s financial affairs, including endorsing checks. For funds intended for a custodial account under UGMA or UTMA, the designated custodian is the authorized endorser. These accounts are specifically designed to hold assets for a minor, with the custodian managing the funds until the minor reaches the age of majority, which is typically 18 or 21, depending on the state.

Proper Endorsement Techniques

Physically endorsing a check made out to a minor requires specific formatting to be accepted by financial institutions. When a parent or legal guardian endorses a check, they typically write the minor’s name, followed by “minor,” then their own name and their relationship to the minor, such as “parent” or “guardian.” For example, the endorsement might read: “[Minor’s Name] – minor, [Your Name] – Parent.” Some banks may also require the parent’s signature directly below this notation.

For checks intended for a custodial account, the endorsement format is slightly different, reflecting the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) designation. The custodian should sign the check as “As Custodian for [Minor’s Name] Under the [State] Uniform Transfers to Minors Act” or “As Custodian for [Minor’s Name] Under the [State] Uniform Gifts to Minors Act.” This clarifies the legal capacity in which the check is being endorsed and ensures the funds are directed to the correct custodial account. It is advisable to include the account number beneath the signature to ensure proper deposit.

Adding a “For Deposit Only” endorsement enhances security, particularly for checks that will be mailed or deposited remotely. This restrictive endorsement limits the check’s use, ensuring it can only be deposited into an account and cannot be cashed by anyone else. To apply this, write “For Deposit Only” above the endorsement signature. This makes the check non-negotiable to anyone other than the specified payee or account, preventing fraud or theft.

Bank Procedures for Minor Check Deposits

Once a check made out to a minor has been properly endorsed, the next step involves presenting it to a financial institution for deposit. Banks generally require the authorized endorser—the parent, legal guardian, or UGMA/UTMA custodian—to be present to complete the transaction. This presence allows the bank to verify the endorser’s identity and confirm their authority to act on the minor’s behalf.

Financial institutions typically request valid government-issued identification from the endorser, such as a driver’s license or passport. Additional documentation, such as the minor’s birth certificate, may be requested to confirm the payee’s identity. The funds from the check can usually be deposited into various account types, including a joint account held by the minor and the adult, a dedicated minor’s savings account, or a custodial UGMA/UTMA account.

Many banks prefer to deposit checks made out to minors rather than cashing them, to ensure proper financial oversight and record-keeping for the minor’s funds. Some banks may allow deposits into the parent’s personal account, though this often requires specific bank policies to be followed. For mobile deposits or ATM deposits, specific bank guidelines must be followed, as these methods may have additional endorsement requirements, such as writing “For Mobile Deposit Only.” Some institutions may not permit third-party endorsements, including those for minors, through mobile deposit or ATM channels, necessitating an in-person visit.