My parents are getting older and I would like to put some money away for them without them knowing. How can I?

Question

My parents are very independent and would never knowingly take money from me. I would like to help them save for future needs. How should I do this? Can you set up an account in someone's name without them knowing?

Answer 1

As stated previously, you can designate an account for your parents, either explicitly in the registration/title or by your intention and keeping it separate from your other accounts. However, to provide the social security number of (one of) your parents will trigger a 1099 each year. Then, if they have no knowledge of the account, their tax return as they file it, will not match the 1099s that are generated by the bank and submitted to the IRS. When the bank records and the individual filings do not match, this generates a discrepancy and the tax payer will receive a notice with the name of the financial institution. This is almost guaranteed to be a surprise to your parents!

Therefore, the simplist way to accomplish this is for you to maintain your name and your social security number on the account. You will be responsible for any taxes on interest, dividends or capital gains until the point at which you give the proceeds to your parents, via a check, thereby closing the account. In doing so, you formally end the tax liability portion of this gesture.

Most investments/accounts, even U.S. savings bonds will require a social security number.

/

Answer 2

Having done exactly what you are asking about, yes, it can be done. If you have the social security number of either of your parents, you can set up an internet account very easily, and use your own address and email account. You can even link various bank accounts that you already have to allow you to send money into your parents account directly. It is nice that you are considering such an account and it will surely benefit them later.

Answer 3

yes you can. it would be called something like "in trust for Mr & Mrs Person". Check with your local bank. Just get bank to automatically take out an amount from your pay and deposit in the trust account . You seem to be a very caring person.
Good onya!