Yes, but the account must be in your child's name with you as custodian

You can open a bank account for your son, but the account belongs to him, not to you. The bank will require his Social Security number and will issue statements and cards in his name. You act as the custodian — the adult who manages the account until he reaches the age of majority (18 or 21, depending on your state). At that point, the account becomes fully his to control, and you lose legal authority over it.

The account type matters. A custodial account (also called a UTMA or UGMA account at some banks) is designed for minors and makes the legal structure clear to the bank. A regular joint account with your son's name on it is simpler to open but creates ambiguity about who owns the money — the IRS and courts treat custodial accounts differently, especially if your son receives gifts or inheritance.

Most banks allow you to open a custodial account for a child of any age, including infants. You will need your son's Social Security number, a government-issued ID (yours), and proof of address. Some banks require the child to be present; others do not. Call ahead to ask what your bank requires before you visit.

Key Takeaways

  • A custodial account is in your son's name with you as the managing adult, and it becomes fully his when he reaches the age of majority in your state.
  • You will need your son's Social Security number and your own government ID to open the account.
  • The bank may require your son to be present, or may allow you to open it without him — policies vary by institution.
  • Once your son turns 18 or 21, you lose legal control of the account, and he can withdraw all funds or close it without your permission.
  • Custodial accounts have tax implications if the account earns interest or investment income above a certain threshold each year.

What documents you need to bring

Bring your government-issued photo ID (driver's license, passport, or state ID) and your son's Social Security number. If you do not have his Social Security number yet, you can apply for one at your local Social Security office or online through ssa.gov. The process takes about two weeks by mail.

Some banks also ask for proof of address — a recent utility bill, lease, or mortgage statement in your name. A few banks require your son to be present with his own ID (school ID, passport, or state ID for older children), though most do not. Check with your bank's website or call the branch before you go; policies differ widely.

If you are opening the account online, you may be able to complete the entire process without visiting a branch. The bank will verify your identity through your Social Security number and may ask security questions based on your credit history.

How the account works once it is open

You receive a debit card and statements in your name as the custodian. Your son may or may not receive his own card, depending on his age and the bank's policy. Some banks issue cards to children as young as 8; others wait until 13 or older. You can ask the bank to issue a card in your son's name so he can learn to use it, or keep the card in your name only and give him access through a mobile app.

Any money deposited into the account belongs legally to your son, even if you put it there. This matters for tax purposes and for means-tested programs. If your son receives Social Security benefits, Medicaid, or SSI (Supplemental Security Income), money in a custodial account may affect his benefits. Check with your state's Medicaid office or the Social Security Administration before depositing large sums.

You can withdraw money from the account to pay for your son's expenses — food, clothing, school supplies, medical bills. You cannot withdraw money for your own use or to pay household bills unrelated to him. The IRS and state law treat custodial accounts as the child's property, and misusing the funds can create tax problems and legal liability.

What happens when your son turns 18 or 21

The age at which your son takes full control of the account depends on your state. Most states set it at 18; a few use 21. Check your state's laws or ask the bank when you open the account. On that date, the account automatically becomes his to manage without your involvement. You cannot prevent him from withdrawing all the money or closing the account.

The bank will send him notice before the transfer happens, usually 30 to 60 days in advance. If you want to discuss what happens to the money, have that conversation with your son before his birthday. Once he takes control, the decision is his alone.

Tax implications of a custodial account

If the account earns interest or investment income, you may owe taxes on it. The rules vary by year and by how much income the account generates. For 2024, the first $1,300 of unearned income (interest, dividends, capital gains) is tax-free for a dependent child. Income above that is taxed at the child's rate up to a certain threshold, then at your rate. These thresholds change annually.

You report this income on your tax return using your son's Social Security number. If the account earns very little (under $100 per year), you may not need to file a separate return for him. If it earns more, you may need to file a Form 8615 (Tax for Certain Children Who Have Unearned Income) along with your own return. Ask a tax professional or check the IRS website for the current year's thresholds.

If your son receives a large gift or inheritance and you deposit it into a custodial account, the gift itself is not taxable to him (gifts are not income). However, any earnings the money generates are taxable as described above.

Alternatives to a custodial account

A joint account with your son's name on it is faster to open and simpler to manage day-to-day, but it creates legal ambiguity. The bank may treat the money as belonging to both of you, which can complicate things if you die, if your son needs means-tested benefits, or if you face creditors. Some banks do not offer joint accounts for minors at all.

A 529 education savings plan is designed specifically for saving for college or K-12 school expenses. You control the account until your son is an adult, and the money grows tax-free if used for education. If he does not go to college, you can transfer the account to another family member or withdraw the earnings (though you will owe taxes and a penalty on the earnings portion).

A Coverdell Education Savings Account (ESA) works similarly to a 529 but has lower contribution limits and more investment flexibility. It also requires your son to use the money for education or face taxes and penalties on the earnings.

If your son is disabled or has special needs, a ABLE account (Achieving a Better Life Experience) lets him save money without losing SSI or Medicaid benefits, up to certain limits. You can open an ABLE account for him if he became disabled before age 26.

Frequently Asked Questions

Can I open a bank account for my son without his Social Security number?

No. Banks are required by federal law to collect a Social Security number or Individual Taxpayer Identification Number (ITIN) for all account holders. If your son does not have a Social Security number yet, you can apply for one at your local Social Security office or online at ssa.gov. The process takes about two weeks by mail or one week if you apply in person.

Will opening a custodial account affect my son's credit score?

No. A custodial savings or checking account does not appear on a credit report and does not build credit history. Credit reports track borrowing and repayment of debt. If you want your son to build credit, you would need to add him as an authorized user on a credit card or help him open a credit-builder loan when he is older.

What if I die before my son turns 18?

The money in the custodial account belongs to your son and will not go through probate. However, the account will need a new custodian — usually a guardian you name in your will or a court-appointed guardian. Name a custodian in your will or in a separate document when you open the account, if the bank allows it. Without a named custodian, a court will appoint one, which can delay access to the money.

Can my son's other parent access the account?

Only if both parents' names are on the account as custodians. A custodial account opened in your name alone belongs to you as custodian, and the other parent cannot access it without your permission. If you want both parents to have access, ask the bank to add the other parent as a joint custodian when you open the account.

What if my son receives SSI or Medicaid?

Money in a custodial account counts as your son's resource and may affect his benefits. SSI allows a child to have up to $2,000 in resources; Medicaid limits vary by state. Before depositing money into the account, contact your state's Medicaid office or the Social Security Administration to understand how it will affect his benefits. In some cases, a special needs trust is a better option than a custodial account.