Can I open a checking account up in my 12 year old daughters name so that I can protect my assets?

Question

I am going to school and have no income but my hubby does and we share a banking account .... we are going thru tuff time and are using a debt settlement program so we can get ourselves outta debt...Allthough we are using this a potential of suing from the creditor may occur and I was told to protect my assets..I was hoping to use my 12 year old daughter as a means of keeping up a checking account and it would also help her in the future with her credit and I hope she will never make the same mistakes her parents did..Nice answers would be welcomed..Thanks

Answer 1

You can open a checking account with a minor. The operative word there is "with" . You must be joint as the responsible party (for legal reasons as it is not possible to sue a minor).

The only avenue around this in an actual account is to have a Custodian account which is sometimes referred to as a "TUTMA" (Transfer Uniform to Minor Account) or "UTMA" (same thing). This account requires that the money deposited and debited be "for" the minor.

Further, you may want to seek free legal counseling in your area. I have heard complaints that even if a person won a law suit, it takes so inredibly long to get money from the losing party that it's sometimes not worth it to sue. Find out what the process is and how the money would be paid out. This way you can assess if your worry over being sued is premature or not.

Remember, you can also stop creditors from harassing you for payment. You sometimes can ask them on the phone but the most common (and effective) way of handling this is to send letters to the appropriate locations requresting that they cease and desist their phonecalls. Send these letters by certified mail and keep record of the receipts they send back after having gotten them.

Sometimes debt just runs away from you and the consequences aren't realized until you're in a world of trouble. While credit counseling can help you manage somewhat it is in your best interest to educate yourself as much as you can. Don't get suckered into "too good to be true" offers simply because they seem to be a way out. Visit with a name brand company with a history of helping clients through debt problems. In the end, if you can do it yourself without going through debt consolidation, that is ideal. In the future, if you are still in the process of paying off debt consolidation, many lenders will refuse to do business with you because of that.

Good luck, I hope you are able to see the light at the end of the tunnel soon!

Answer 2

Well first off I would be alarmed if I was her father - I have a son and a daughter by the way. She seems way too young to be wearing that kind of clothing and make-up and of course she's going to get attention from all kinds of men. She sounds like she had a tough time when she was 5 - how did the counselling leave her? I mean in what state of mind? I don't think a cell phone and $30 of songs every few months is spoiling her - the real issue is to make her realise she is only 12 years old. Personally, I hate the way children these days seem to be growing up so fast - especially girls. I guess peer pressure and the media are to blame for most of this. Both you and your husband have to be united in trying to get her to understand how inappropriate she's dressing and acting for a girl of her age. The sooner the better - it'll only get worse as time goes by.

Answer 3

For a checking account you must be 18. One way to accomplish what you want would be to get a safe deposit box and put cash in there. It may not earn anything, but there is no record of it. Don't take the money out of a current account and then open a safe deposit box (not the same day). Open the box, take out a few hundred dollars this week and put it in the box, different day next week or the following do the same. You want it to look like you are using it for daily/weekly expenses.

Answer 4

yes you can as the custodial parent. It can be done under the uniform gift to minors act. But the funds will always be a gift.

Answer 5

I dont think you can, unless it is listed as a custodial savings account for her that she cant touch until she is 18.

Answer 6

Sorry, has to be 18 to have checking account.

You could open savings account with both your names, then hubby have access to it.

Answer 7

That is whats known as Identity theft. The government frowns on fraud.