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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Estate Law
Satisfied Customers: 111657
Experience:  Experienced in Trust and Succession Law, including Louisiana Laws
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I need to open an account that is in trust kids, that

Customer Question

I need to open an account that is in trust for my kids, that will not be consider my money, how do I do that? what information will I need?
Submitted: 8 months ago.
Category: Estate Law
Expert:  Law Educator, Esq. replied 8 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You can form an irrevocable trust with the children as beneficiaries or you can simply open a bank account under the Uniform Trust for Minors Account (UTMA) with a bank under the child's social security number. The UTMA account would not be taxed to you or be considered your money, but you also could not use any of the money except directly for the child's needs and you need to keep receipts. If you form an irrevocable trust, with you as trustee and your child as beneficiary, then you can set your own terms regarding distribution and use of the funds and also could arrange to pay yourself something as part of your being trustee. There are more options for you using an irrevocable trust, but it depends on how much money is involved too. If the money is under about $200K, then using a UTMA account with the bank or with an investment company like JP Morgan Investments or Merrill Lynch would be fine.
You would need an attorney locally if you would form a trust. You do not need an attorney for the UTMA bank or investment account. You would need the child's SSN for each account.