You cannot open a checking account in someone else's name without their knowledge and consent

A bank will not open an account using another person's name, Social Security number, or tax ID without that person present or without documented authorization. The person whose name is on the account must sign the account agreement themselves. Opening an account in someone else's name without permission is identity theft and is a federal crime.

If you need to manage money for someone else — a minor child, an aging parent, or someone with a disability — banks offer legal structures that do not require opening an account in their name alone. These include joint accounts, power of attorney, guardianship accounts, and custodial accounts for minors. Each has different rules about who can withdraw money, who controls the account, and what happens if the account holder dies.

Key Takeaways

  • A joint account lets two people own the account together, and both can withdraw money and make decisions, though the bank may require both signatures on large transactions.
  • A power of attorney document lets you manage someone's finances without opening a new account, as long as they are mentally able to sign the document while they are still living.
  • A custodial account for a minor is opened in the child's name but controlled by an adult until the child reaches the age of majority, usually 18 or 21.
  • Guardianship requires a court order and is used when someone cannot manage their own finances due to age, disability, or incapacity.
  • The person whose name is on the account must be present at the bank or provide notarized written consent; banks verify identity before opening any account.

Joint accounts: both owners, shared access

A joint account is opened in two people's names, and both owners have equal rights to the money in it. Either person can deposit or withdraw funds without asking the other. Both names appear on the checks and debit card, though the bank can issue separate cards to each owner.

Joint accounts are common between spouses, between parents and adult children, or between siblings managing shared expenses. Both owners are responsible for overdrafts and fees. If one owner dies, the money in the account usually passes to the surviving owner automatically, depending on how the account is titled (this is called "right of survivorship" and varies by state and bank).

To open a joint account, both people must go to the bank together or one person must go with a notarized power of attorney from the other. The bank will ask for ID, Social Security numbers, and proof of address for both owners. Both must sign the account agreement.

Power of attorney: control without a new account

A power of attorney is a legal document that lets one person (the "agent") manage another person's finances without opening a new account. The person giving the power (the "principal") must sign the document while they are mentally able to understand what they are signing. The principal can limit the agent's powers to specific accounts or transactions, or give broad authority.

Power of attorney does not require a court order and is faster than guardianship. The principal can revoke it at any time while they are still living. When the principal dies, the power of attorney ends, and the agent must stop using it.

Banks vary in whether they accept a power of attorney document. Some require their own form; others accept a state-standard form or a form prepared by an attorney. Call the bank before the principal signs anything to ask what document they will accept. A notarized power of attorney is stronger than an unnotarized one, and some banks require notarization.

Custodial accounts for minors: adult control, child ownership

A custodial account is opened in a child's name but managed by an adult (the custodian) until the child reaches the age of majority. In most states this is age 18; in a few it is 21. The account is the child's property for tax purposes, but the custodian controls all transactions.

Custodial accounts are often used for savings, inheritance, or gifts. The child's Social Security number is used, not the custodian's. When the child turns 18 or 21, the account transfers to their full control, and the custodian's authority ends.

There are two types: UTMA (Uniform Transfers to Minors Act) and UGMA (Uniform Gifts to Minors Act). UTMA is newer and more common; it allows more types of property to be held in custody. Both are available in most states. The custodian must be at least 18 and is usually a parent, grandparent, or other relative.

Guardianship accounts: court-ordered control

A guardianship is a court order that gives one person (the guardian) legal authority to manage the finances and personal decisions of another person (the ward) who cannot do so themselves. Guardianship is used for adults with severe disability, dementia, or mental illness, and for children whose parents cannot or will not manage their money.

The guardian must file a petition in probate or family court, and in most cases a hearing is held. The court appoints the guardian after finding that the ward is incapable of managing their own affairs. The guardian must file annual reports with the court showing how the ward's money was spent.

Guardianship is more expensive and time-consuming than power of attorney, but it is the only option when the person cannot sign documents or when there is family conflict. The guardian can open accounts in the ward's name or manage existing accounts, depending on what the court order allows.

What banks require to open any account in someone else's name

Whether you are opening a joint account, a custodial account, or an account under guardianship, the bank will require the same basic documents. The person whose name is on the account must provide a government-issued photo ID (driver's license, passport, or state ID card). The bank will verify the Social Security number or tax ID against the ID.

If the person cannot go to the bank in person, the bank may accept a notarized power of attorney or a court order (guardianship). Some banks allow video verification or remote opening, but they still require the account holder to sign electronically or by mail. The bank will not open an account based on a phone call or email alone.

Bring proof of address for both owners — a recent utility bill, lease, or mortgage statement. Some banks also ask about the source of funds or the purpose of the account, especially for large deposits. This is standard anti-money-laundering procedure and applies to all new accounts.

What happens if someone tries to open an account in your name

If you discover that someone has opened an account in your name without your permission, contact the bank immediately and ask them to close the account. Report the fraud to the Federal Trade Commission at IdentityTheft.gov and to your state's attorney general. Place a fraud alert on your credit report with one of the three credit bureaus (Equifax, Experian, or TransUnion), and consider a credit freeze.

Keep copies of all correspondence with the bank and the FTC. If the fraudulent account caused overdrafts or debt collection, you may be able to dispute the charges. Banks are required to investigate fraud claims, though the process can take weeks or months.

Frequently Asked Questions

Can I open a checking account for my child without them being present?

No, but you can open a custodial account in your child's name with you as the custodian. Your child does not need to be present, but you will need their Social Security number and proof of their address. You will sign the account agreement as the custodian.

What if my parent has dementia and cannot sign documents?

If your parent signed a power of attorney before losing capacity, you can use that document to manage their accounts without going to court. If they did not, you will need to file for guardianship in probate court. This requires a court hearing and usually a doctor's statement that your parent cannot manage their own affairs.

Can a joint account owner withdraw all the money without telling the other owner?

Yes. Both owners of a joint account have equal legal rights to all the money. The bank will not stop one owner from withdrawing funds. If you are concerned about this, a power of attorney with limited withdrawal amounts, or a separate account, may be safer.

Do I need a lawyer to set up power of attorney?

No, but it helps. Many states provide free or low-cost power of attorney forms online. However, a lawyer can make sure the document is valid in your state and covers what you actually need. Costs range from $100 to $500 for a simple power of attorney prepared by an attorney.

What is the difference between a joint account and a power of attorney?

A joint account makes both people owners of the money; both can withdraw without permission. Power of attorney lets one person manage another's money without owning it. With power of attorney, the agent must act in the principal's best interest and can be held accountable if they do not.