How to Disconnect a Parent From a Custodial Bank Account After Turning 18

Now that you are 18, you might be considering disconnecting your parent from your custodial bank account. While this process can vary depending on your state and the specific account type, there are several steps and tips you can follow to ensure a smooth transition. Here’s a detailed guide to help you navigate this process:

Steps to Disconnect a Parent

Step 1: Verify Your State’s Age of Majority

First, ensure that your state has reached the age of majority at 18. However, some states have different ages. Do an official check with your local government to confirm this.

Step 2: Contact the Bank

Enquire about account closure: Reach out to the bank where the custodial account is held and inquire about closing the account and opening a new one in your sole name with the balance. Prepare necessary documentation: You may need to provide a copy of your birth certificate and a valid picture ID, such as a driver's license. Discuss with the bank officer: Talk to a bank officer who will have accurate information regarding the process and any specific requirements.

Step 3: Open a New Account

Once you have confirmed the details, you can open a new account at the same bank. Transfer the funds from the custodial account into the new account in your sole name. If the bank does not allow you to withdraw all the funds, leave a small amount, around $5, and proceed.

Step 4: Close the Old Account

Once the funds are transferred to the new account, close the old custodial account to finalize the process.

Step 5: Add a Beneficiary

As a precautionary measure, add your parent as a beneficiary on the new account. This ensures that if something were to happen to you, your parent would receive support without gaining control or access to your financial transactions. This action does not grant them any power or ability to review your account.

Step 6: Consult with the Bank Manager

Depending on the specific bank and the type of custodial account, you may need to set up a new adult account or remove the parent from the existing account. Talk to your bank manager to understand the exact procedure for your bank.

Alternative: Seek Immediate Attention

If you need immediate assistance or feel uncomfortable with the process, you can press the big red alarm button inside the bank door. This will immediately bring bank staff to your aid.

Final Tip: Control Your Account Information

The best approach is to open a new account and transfer the money to it. This way, only you have the account information, providing an extra layer of security.

Managing your finances independently after turning 18 is an important step towards adulthood. Follow these steps to disconnect your parent from your custodial bank account and take control of your financial future.