Topic: Minor Accounts
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Can we enforce account agreements against minors who open accounts with us?
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The Illinois Banking Act states that banks may accept deposits from minors and that “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.” 205 ILCS 5/45.1. While that provision would protect…
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For minor accounts, how can we determine whether it’s appropriate to open a UTMA account versus an ordinary deposit account?
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A trust under the Uniform Transfers to Minors Act may be appropriate for setting aside money for a child, as it provides a statutory framework for the obligations of a custodian of a minor’s property. However, the decision of whether to set up a trust account, versus an ordinary checking account, should be left to…
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Can we open a business account for a seventeen-year-old?
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The Illinois Banking Act states that banks may accept deposits from minors and that “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.” 205 ILCS 5/45.1. The Illinois Business Corporation Act…
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How can we title a Roth IRA account for a minor? Can a teenager under the age of eighteen be the owner of an IRA account in Illinois?
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We do not see any problems in setting up an IRA account for a minor, and we recommend titling the account as you would any other IRA account. The Illinois Banking Act states that “the rules and regulations of such bank with respect to each such deposit and account shall be as binding upon such…
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We just started offering Uniform Transfers to Minors Act (UTMA) accounts. Do we need to update our account terms and conditions to reflect this new type of account?
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We believe that it would be a best practice to update your terms and conditions to ensure that customers agree that the bank will comply with the Uniform Transfers to Minors Act’s terms. We are not aware of any specific requirements for account disclosures in the Act (though it does specify that accounts are titled…
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Does Illinois law prevent minor accounts from being reported as unclaimed property after five years of dormancy?
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A special rule in the Uniform Disposition of Unclaimed Property Act [Repealed effective 1/1/18] extends the abandonment time period for certain types of minor accounts established under the Probate Act. 765 ILCS 1025/2(f) [Repealed effective 1/1/18]. That section of the Probate Act enables a court to place a minor’s inheritance money into a custodial account…
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Does Illinois prohibit charging dormancy fees on minor accounts?
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Under Section 45.1 of the Illinois Banking Act, the same rules and regulations that apply to an account held by an adult apply to an account held by a minor. 205 ILCS 5/45.1. And, Illinois law permits a bank to determine an appropriate dormancy fee in accordance with the bank’s prudent business judgment and safe…
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Will Illinois courts enforce a loan agreement signed by a minor? What about when they open deposit accounts and write checks on them – is the signature of a minor legally binding for those activities?
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Let’s take the easier question first. Section 45.1 of the Illinois Banking Act allows a minor to open a deposit account in his or her own name and provides that a bank’s rules and regulations for the account “shall be as binding upon such minor as if such minor were of full age and legal…