Savings account for LO?

VeilSdeGTO

I want to start putting money away in a savings account for my LO, but I want it in her name. It would be an account that she can deposit money into, but not be able to withdraw until she was 18.

If I want to have power of attorney, would I have to be on the account? I'm assuming I will need to set it up in my name and when I have her (and she has a SS#) I can add her and make her the primary account holder?

I want to set it up so that in case anything happens to me (ie. I go bankrupt or something like that), they can't go after that account. Is there a way to do this?

MegMeg0913

::Lurking from TTCAL::

Most banks have exactly what you are wanting.  You don't need a power of attorney or anything like that.  The ammount of access that the child has can be changed when the child is older if you want him/her to have access to some money, but it is usually set up with only the parents (or whomever set up the account) are able to do withdrawals until they are 18.  There are also special savings and CDs available if it is for education savings.  

You will need the name, SSN and DOB for either.  

I don't think there is anyway for you to be on it and not have it safe from bankruptcy.  I could look into if you needed.  

I work in banking so if you have any more questions, let me know. GL

  

opallover

We set up a 529 for Noah after he was born. We aren't on the account and he can use it for whatever he wants - college, cooking school, wedding - whatever. Also, other people can donate X amount tax free and the money we put in there is tax free.

julireye

Once the baby is born we are setting up a 15 pay life insurance on him. Some people it is creepy but we are doing for the savings portion of it. You only pay for 15 years and it accumulates cash value. By the time the baby is 18 the cash value will be equal to the premiums we paid. We will own the policy so if we see the  kid  is not responsible enough we can just leave the money in the policy. The cash value is guarantee at 4% annually and it also includes a guarantee insurability clause so if we never cancel the policy and he/she is diagnose with anything he/she can increase the death benefit up to 2 million dollars (I believe that is the amount), which I see as a great benefit to his future husband/wife and children.

AngnShaun

My sister and BIL set up ING accounts for their kids

VeilSdeGTO

CurlingRocks:

Something to consider:

I've never set one up, but there are also accounts that can only be used by your adult child to cover educational costs if you want to have some say in what s/he does with the money.  If you choose the account that s/he has total control of at age 18, you will have little to no say in how s/he spends the money.

My parents invested in some savings bonds for each of their kids, which I really appreciate now that I've got adult needs and wants like a new vehicle and home.  And they take so long to mature, your child will probably not be champing at the bit to cash them in before s/he is mature enough to use the money responsibly.

Any idea where I find one of these?