Yes, you can set up a checking account in someone else's name or control
A custodial checking account lets you open and manage a bank account for someone else — typically a minor, an adult who cannot handle their own finances, or someone you're managing money for. The account is legally in their name, but you control it as the custodian or authorized representative. The bank will require proof of your relationship to the account holder and your legal authority to act on their behalf.
The exact rules depend on the account holder's age and situation. For a child under 18, most banks let a parent or guardian open a custodial account with just a birth certificate and ID. For an adult, you'll need a power of attorney document, guardianship papers, or conservatorship order from a court — banks will not let you open an account in an adult's name based on your say-so alone.
Key Takeaways
- Custodial accounts for minors require only a birth certificate and your ID at most banks; no court order is needed.
- For an adult, you must have a signed power of attorney, guardianship order, or conservatorship document before any bank will let you control their account.
- The account is legally in the other person's name, so it counts as their asset for tax, financial aid, and benefit purposes.
- Some banks restrict what a custodian can do — you may not be able to close the account or transfer it without the account holder's consent once they turn 18.
Custodial accounts for children and what happens at age 18
A custodial account for a minor is the simplest route. You walk into a bank with your ID and the child's birth certificate, and you can open a checking account in their name with yourself as custodian. You'll have full control — you can deposit money, write checks, set up automatic payments, and withdraw funds. The child's name is on the account, but they don't need to be present or sign anything.
When the child turns 18, the account legally becomes theirs. What happens next depends on the bank's rules. Some banks automatically convert the account to a regular checking account in the young adult's name, and you lose access unless they add you as an authorized user. Others require the young adult to come in and sign new paperwork. A few let the custodian stay on the account if the young adult agrees, but this is not standard. Read the bank's custodial account agreement before you open it, because the transition rules vary widely.
If you want to keep control after the child turns 18, you'll need a different legal document — a power of attorney signed by the young adult, or a guardianship order if they cannot manage their own finances. A custodial account alone does not give you that authority.
Power of attorney and guardianship for adults
If the account holder is an adult or will be an adult soon, you need legal authority to open and control their account. The most common document is a power of attorney — a signed, notarized form in which the account holder gives you permission to handle their finances. A power of attorney can be limited (you can only do certain things) or general (you can do almost anything with their money). It must be signed by the account holder, witnessed, and often notarized, depending on your state's rules.
If the account holder cannot sign a power of attorney because they lack mental capacity, you'll need a guardianship or conservatorship order from a court. This is a longer process — you file a petition, the court holds a hearing, and a judge appoints you as guardian or conservator. Once the order is signed, you can open an account and control it. Bring the court order to the bank; they will photocopy it and keep it on file.
Some states use "guardianship" for both personal and financial decisions, while others split them into "guardianship" (personal) and "conservatorship" (financial only). Check your state's court website or call your county courthouse to learn which one you need and what forms to file.
What banks need to see before they'll open the account
Banks have different requirements, but most will ask for the same core documents. Bring your government-issued ID and the account holder's ID (or birth certificate for a minor). If you're opening a custodial account for a child, that's usually enough. If you're acting under power of attorney or guardianship, bring the original or a certified copy of that document — the bank will photocopy it and keep it with the account file.
Some banks also ask for proof of the account holder's Social Security number, a utility bill or lease showing their address, or a letter from a doctor or social worker if guardianship is involved. Call the bank branch ahead of time and ask what they need; different branches of the same bank sometimes have different practices, and it's faster to bring everything at once than to make two trips.
Online banks are often stricter than brick-and-mortar branches. Many will not open custodial accounts at all, and some won't open accounts under power of attorney without a video call or notarized documents. If you're planning to open an account online, check the bank's website first or call their customer service line to confirm they can do what you need.
Tax and benefit consequences of a custodial account
Money in a custodial account belongs to the account holder for tax purposes, even though you control it. If the account earns interest or dividends, that income is taxed to the account holder, not to you. For a minor, the first $1,250 of unearned income per year (as of 2024) is usually tax-free, and the next $1,250 is taxed at the child's rate. Above that, it may be taxed at the parent's rate under "kiddie tax" rules. Talk to a tax preparer if the account will hold a large amount of money or earn significant interest.
A custodial account also counts as the account holder's asset for financial aid purposes. If the account holder is a college student, money in a custodial account in their name reduces their financial aid package more than money in a parent's account would. If the account holder receives means-tested benefits like Supplemental Security Income (SSI) or Medicaid, a custodial account in their name can affect their benefit amount or make them ineligible. Before you open a custodial account for someone receiving benefits, contact their benefits caseworker to understand the impact.
What you can and cannot do as custodian
As custodian, you can deposit money, withdraw money, pay bills, set up automatic transfers, and manage the account day-to-day. You cannot, in most cases, close the account, change the account holder's name on it, or transfer it to another bank without permission — and once the account holder turns 18, you may not have permission to do any of those things. Some banks let you close a custodial account before the child turns 18, but others require the child to close it themselves once they reach the age of majority.
If you have power of attorney or guardianship, your authority is broader, but it's still limited to what the document says. A power of attorney might let you manage bank accounts but not sell real estate. A guardianship order might let you control finances but not make medical decisions. Read your document carefully, and if you're unsure whether you can do something, ask the bank or consult a lawyer.
You cannot use the account for your own purposes. Money in a custodial account or an account you control under power of attorney belongs to the account holder, not to you. Using it for your own bills or expenses is theft, even if you're the custodian. If you need to be reimbursed for expenses you paid on the account holder's behalf, you can withdraw that amount, but you should keep records and be prepared to explain it.
Frequently Asked Questions
Can I open a checking account for my adult child without their permission?
No. For an adult, you need a signed power of attorney or a court order (guardianship or conservatorship). A bank will not open an account in an adult's name based on your relationship alone. If your adult child cannot sign a power of attorney, you'll need to file for guardianship in court.
What happens to the account when the child turns 18?
The account becomes theirs legally. Most banks convert it to a regular account and remove you as custodian, though some require the young adult to sign new paperwork first. Check your bank's rules before you open the account so you know what to expect.
Will a custodial account affect my child's financial aid or benefits?
Yes. Money in a custodial account in your child's name counts as their asset for college financial aid and for means-tested benefits like SSI or Medicaid. Contact your child's school or benefits caseworker before opening the account to understand the impact.
Can I use the account to pay my own bills?
No. Money in a custodial account or an account you control under power of attorney belongs to the account holder. Using it for your own expenses is theft. You can withdraw money you spent on their behalf if you keep records, but the account itself is not yours to use.
Do I need a lawyer to get power of attorney?
Not always. Many states provide free or low-cost power of attorney forms online through the state bar or court website. You can fill one out yourself, have it notarized, and bring it to the bank. If the situation is complicated or the account holder has significant assets, a lawyer can help ensure the document is correct and covers what you need.