Grandparents opening bank accounts

**angeandkyla** · 19-11-2007 22:27

What do others think of overseas grandparents (inlaws) opening bank account in daughters name? Unfortunately I have a lot of trust issues with them and not sure whether I am comfortable with this - I am a bit suspicious of their motives so I just wanted to see how others would feel about this? Money has always been a touchy issue for us as when DP passed away they tried to claim it all so that DD and I would have to go over and get it.

**Stepfordmum** · 19-11-2007 22:32

MY mum and dad and my mil and fil have accounts for all the grandkids ....

So mum and and have 4 and mil has 2 now...

I think its a great idea...

I think that its lovely grandparents are trying to do these things for their grandkids these days always need a leg up in life!!

I say let them its a great kind generous thing they want to do...

**angeandkyla** · 19-11-2007 23:05

It is a lovely thing for them to want to do you are right but I guess there are just lots of other issues involved that I need to work on. My inlaws don't respect alot of boundaries when it comes to my daughter and I so I just would like to see what other people do. When you say that your parents and inlaws have accounts open are they accounts actually in your parents/inlaws name or your childrens?
Thank you

**TeenyT** · 20-11-2007 08:47

I think they have to have them as trust accounts, dont they? The grandparents are the account holders/signatories but the account is titled "In trust for:..(your child's name). I'm not sure if they can withdraw once they've opened the account or not.

If they are doing it this way, it's a nice gesture. DD's grandparents each have a trust account for her and the little mite is richer than us in savings!! We'll be askig her for a loan soon!!

**missie_mack** · 20-11-2007 08:57

Thats right if the account is opened by the grandparents they are the signaturies and just hold it in trust. They can take the money out at anytime but say your daughter cant until she is 18 or 21 depending on what they have decided.

I guess I come down to the theory thats its their money and its a nothing gained nothing lost factor if they withdraw all the money anyhow.

My Mum opened one for DS. At first she was just gonna put money in there instead of presents which I wasnt happy about as I think little kids should have presents. Now she buys him a smaller present and puts some money in there. So at least he is getting a gift for his birthday/christmas

**subaruforestermum** · 20-11-2007 13:35

To open a bank account in a childs name they need the birth certificate.....even if opening with them as the signatory!!! Well all banks I have dealt with here you have had to, Commonwealth, Bendigo, NAB......

Many people open childrens accounts in the kids names for large savings accounts, as they are tax free!

I dunno how I would feel about it...depends on them, say if it was my mum I would feel more comfortable than if it was DP's mum for example, because of who and how DP's mum is! if you get what I mean!

**SilverStarfish** · 20-11-2007 13:40

Not long after Sarah was born my MIL opened an account for her - took me completely by surprise. She hadn't asked me or even mentioned she was thinking about doing it.

After the indignant "Hey! This is my kid, what are you doing??" thoughts passed, I realised that she was actually just being nice, and that it was something her parents had done for her children.

The account is one of those "In Trust" ones. All the money in there is Sarah's. I don't know when she will get it, but I'm assuming when she turns 18.

ETA: Just reading your post again... it sounds like you do have grounds to be at least a little suspicious of their motives. Are you able to simply just come out and ask them about it? Find out what sort of legal thingys there are on the money - who has "control", who can withdraw money and when etc. Once all the details are out in the open, perhaps it won't seem so suss.

**missie_mack** · 20-11-2007 13:41

Originally Posted by subaruforestermum

To open a bank account in a childs name they need the birth certificate.....even if opening with them as the signatory!!! Well all banks I have dealt with here you have had to, Commonwealth, Bendigo, NAB......

Only if it is the childs bank account not when it is a trust account.

**tanni_83** · 20-11-2007 13:48

What do you think her motives might be....??

Im sure they just want to do something nice for your DD, but sometimes you just cant tell if people have something else up their sleve too