Can I open a bank account for someone else?
You can open a bank account for someone else with a joint bank account or general power of attorney. Opening a joint bank account will require both parties and identification. A general power of attorney has authority to make financial decisions on behalf of an individual.
Imagine, opening a bank account for your elderly mother without hassle. You’re dealing with enough stress, so why make it worse?
Fortunately, it is possible to open a bank account for someone else.
Luckily for you, I’m going to show you how to open a bank account for someone else. I’ll even show you what might restrict you from opening an account. After you’re done, you’ll have a good understanding if you can open an account.
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Can I open a bank account for someone else?
Opening a bank account for someone else is possible if you are a co-owner or have power of attorney. All parties must be present when opening a joint bank account. A power of attorney can open a bank account themselves by completing paperwork and providing identification.Click to Tweet! Please Share!Click To Tweet
Is it illegal to set up a bank account for someone else?
It is not illegal to set up a bank account for someone else. Banks will not let you open an account for someone else if you do not have the proper authority. However, it is illegal if you falsify information or pretend to be someone else.
Bank’s have a legal obligation to protect customers from malicious activity. A bank will protect clients from fraud or identity theft. Falsifying information to open a savings account without consent could result in legal action.
Can a power of attorney get a debit card?
A power of attorney can get a debit card if they have unrestricted access to handling financial transactions. Most commonly, a ‘General Power of Attorney’ would be able to obtain debit cards. Durable, special or limited, or springing durable power of attorney may have restrictions in their ability to obtain a debit card.
A general power of attorney can perform most duties on behalf of the individual. Such duties would include opening a bank account, withdrawing money, and obtaining a bank account. Typically, general power of attorneys have little to no restrictions.
General power of attorneys are common, typically used for elder care. You should not have issues obtaining a debit card if you have complete control.
A durable power of attorney gives the agent rights to act for an individual if the individual is incapacitated. An example would be if an individual entered into a coma and could not handle their estate.
A special or limited power of attorney only has rights to act for an individual in a limited scope. You are designated to perform a specific job, like sell a house. Therefore, you must be able to show a debit card is necessary to perform your scope or obtain permission.
Can a power of attorney take money from a joint account?
General power of attorneys can take money from a joint account. A general power of attorney has complete control over an individuals estate, including bank withdrawals. Durable and special or limited power of attorneys may not be able to withdraw money unless certain conditions are met.
How to open up a bank account for someone else
Open up a bank account for someone else by visiting your local bank with all parties. The bank may ask for photo identification for adults or a social security card for minors. Power of attorneys should bring legal documentation of their PoA status. The bank will provide you with the necessary forms.
In any case, opening a bank account is the same process. You’ll visit with a bank associate who will ask you for identification and an initial deposit. Opening a bank account will take between 30 and 60 minutes.
Custodial accounts are bank accounts for minors, but under the supervision of an adult. Most children do not have a photo identification, such as a driver’s license, so a social security card will be required.
Joint accounts are for two adults who want joint ownership of all money within the account. The account can be between any individual, married, brother and sister, or any other relation. You will both need a photo identification and to be present for the account opening.
A power of attorney will need to bring a document which proves they are power of attorney. You will also need to bring a photo identification. The bank account is often under the individual’s name and the power of attorney is listed as PoA.Click to Tweet! Please Share!Click To Tweet
Summary: Can I open a bank account for someone else?
As you can see, it is possible to open a bank account for someone else. The most common occurrences are for minors, joint accounts, and power of attorney. As long as you’re acting legit, it is not illegal to open a bank account for someone else.
A joint account (for adults) and a custodial account (for children) will require all parties to be present at the bank. Adults will need to show photo ID (e.g. driver’s license) and children a social security card.
A power of attorney will need to bring their identification and proof of authority. However, ensure you are a general power of attorney and have the ability to handle financial transactions. Some power of attorneys have limited scope, such as taking power when the individual is capacitated.
To open an account, simply meet with a bank associate.