Children's Savings Accounts

[pelfforme]

I'd like to open savings accounts for each of my children.  Will my ex, being their father, be able to access them?

[vamp]

Shouldn't be.  Open them as custodial accounts (kids primary, you custodian).  He shouldn't legally be able to access them.

[anniewalker]

Speak to the financial sales representative at your bank.  It has everything to do with how the accounts are set up.  For example, my mother has a savings account set up for each of her grandchildren at her credit union.  It is VERY sticky to open a savings account for a child.  The parent / grandparent / custodian has NO RIGHT to withdraw money from the accounts for anything less than extraordinary expenses.  Let me see if I can explain it... any money in the account is given to the child.  It belongs to the child.  Because they are a child they cannot make financial decisions, so they cannot "decide" to give the money to anyone.  If you don't tell the kids that the accounts exist and they don't have a passbook, then they can't get to the money anyway.  Regardless, you cannot (nor your spouse) touch the money unless something dramatic happened.  The parent has no legal right to withdraw the funds from such an account for any purpose other than the child's own benefit.
 
Better question... how do you think your spouse would find out about the existence of such accounts, and have you considered other investing alternatives such as stocks (sharebuilder.com is a great place to start), bonds (like the savings bonds we got as kids), CD's, and mutual funds.  A good financial advisor at your bank can help you make the best decision for you and your kids.
 

[Lee Borden]

And along the lines that Annie suggested, don't overlook opening a Section 529 plan for them. The money is (effectively) set aside for college and can't be used for any other purpose until the child is an adult. If your children are young enough for the account to grow some - make sure you understand the Rule of 72 at http://www.divorceinfo.com/ruleof72.htm - a Section 529 plan makes all the sense in the world.

[livealittle]

on another note about the custodial accounts....that money automatically legally belongs to the child upon the child attaining the age of 21.  The custodian is only to withdrawn funds from the custodial account for the benefit of the minor.  If, upon attaining the age of 21, the custodian withdraws the money and does not give it to the minor, the minor has every legal right to sue the custodian and will normally be awarded the monies.  Don't ask how I know this.

[pelfforme]

All I can say is, wow, I had no idea.

Thanks for you all your replies.

[Phoenix]

How bout good old fashioned savings bonds?  My ex MIL just gave J almost 1K worth that she'd gotten him when he was a tot. 

[bullshit]

I think all parents should start a savings account for their kids when they are young. That way when it comes time for them to get out of your house, they won't have the excuse that they don't have the money. Hand them the paperwork and wave goodbye.