We typically allow parents to open joint accounts with their minor children by having the parent sign the account agreement for both the child and the parent. Does the parent’s signature on behalf of the child create a right of survivorship for the child under the Joint Tenancy Act?

We cannot confirm that a parent’s signature on behalf of a minor child would create a right of survivorship.

Under the Joint Tenancy Act, a right of survivorship in a joint deposit account may be established only when all account owners sign an agreement to that effect. It is conceivable that a court would view the parent’s signature on behalf of the child as satisfying the dual signature requirements of the Joint Tenancy Act. However, we are not aware of any case that addresses this issue, and there are many cases in the personal injury context that deny a parent’s right to sign waivers and similar agreements on behalf of a minor.

On the other hand, we believe that minors may sign bank account agreements on their own behalf. The Illinois Banking Act permits state banks to accept deposits from minors, “and the rules and regulations of such bank . . . shall be as binding upon such minor as if such minor were of full age and legal capacity.”

Since it is unclear whether a parent may sign on behalf of a minor, and because banks may treat minors as adults in the context of deposit accounts, we believe the prudent approach would be to require the signatures of both the child and the parent in order to ensure the creation of a right of survivorship for the child with respect to the account. We note that as an alternative, customers may achieve the same goal by establishing deposit accounts that are payable on death to their minor children.

For resources related to our guidance, please see:

Joint Tenancy Act, 765 ILCS 1005/2(a) (“When a deposit in any bank . . . transacting business in this State has been made or shall hereafter be made in the names of 2 or more persons payable to them when the account is opened or thereafter, the deposit or any part thereof or any interest or dividend thereon may be paid to any one of those persons whether the other or others be living or not, and when an agreement permitting such payment is signed by all those persons at the time the account is opened or thereafter the receipt or acquittance of the person so paid shall be valid and sufficient discharge from all parties to the bank for any payments so made.”)
Doubler v. Doubler, 412 Ill. 597, 601 (1952) (“In our opinion, therefore, the proper construction of the section here involved under the facts of this case is that an agreement signed by [the husband] and [the wife] permitting payment to the survivor was necessary to create rights of survivorship in the deposit and that the changing of the names on the account by a third party, the bank cashier, at the direction of one of the parties alone, is insufficient to satisfy the requirements of the statute.”)
Bray v. Illinois Nat. Bank of Springfield, 345 N.E.2d 503, 505 (Ill. App. 4th Dist. 1976) (“It is clear under the [Joint Tenancy Act] and the cases that no joint account was created. . . [The Joint Tenancy Act] has consistently been interpreted to mean that a joint tenancy with the right of survivorship cannot be created in a deposit account except by parties signing an agreement such as the signature card provides.”)
Illinois Banking Act, 205 ILCS 5/45.1 (“A state bank may accept deposits made by a minor and may open an account in the name of such minor and the rules and regulations of such bank with respect to each such deposit and account shall be as binding upon such minor as if such minor were of full age and legal capacity.”)
Meyer v. Naperville Manner, Inc., 262 Ill.App.3d 141 (2d Dist. 1994) (“It is now the general rule that, in the absence of statutory or judicial authorization, a parent cannot waive, compromise, or release a minor child’s cause of action merely because of the parental relationship.”)