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Minor & Trust Accounts


There are important differences between Accounts for Minors and Uniform Transfers (Gift) to Minor Accounts.  It is important that you understand them before you open an account.

Accounts for Minors Uniform Transfers (Gift) to Minor Accounts
Joint ownership Irrevocable trust
Must be joint with parent or legal guardian Requires a custodian
Valid ID for minor recommended* No ID required for Minor
Must be able to write own name (for withdrawals) Minor has no access to account
Checking accounts allowed No checking or loans allowed
If the minor is 13 years of age or older, a checking account and Visa Debit card is permissible Can only be opened for minors under the age of 17

*Valid ID is required to transact at branches or issuance of Visa Check or ATM cards, or placing a check order in the minor's name.

Minor Accounts

Definition & Explanation

A minor account is no different than any other account at Star One, with the exception that the account must be joint with a parent or legal guardian.  The minor has access to his or her accounts, but must display a valid ID when visiting a branch in order to transact.

The minor and joint owner control the account.

If the minor is 13 years of age or older, a checking account and Visa Debit card is permissible. 

Transfers (Gifts) to Minors Accounts

Definition & Explanation

A transfer or gift to minor account is an irrevocable trust for the benefit of a minor.  The dividends earned are reported under the minor's social security number.  The custodian, who opens the account, controls it and can make withdrawals, and is solely responsible for explaining withdrawals to the Internal Revenue Service, if audited.  (All withdrawals must be for the benefit of the minor.)  The trust is designed for saving, so checking accounts and loans may not be established under the account.

Transfers or gift to minor accounts may be opened for family members.  If the child (beneficiary) and/or custodian are already members of the Credit Union prior to establishing a gift to minor account, the account may be opened with a sponsor.  In this case, the custodian may name anyone successor custodian.

If both the child (beneficiary) and the parent/guardian are not members of the Credit Union prior to establishing a gift to minor account, the account must be opened with a sponsor.  In this case, the sponsor must be named either the custodian or the successor custodian and the child must be related to the sponsor. 

The custodian controls the account until the minor is of adult age.  In California, persons eighteen (18) years of age are considered adults. 


When the minor reaches adult age, the account can be converted into a regular savings account.  A new membership application must be completed and signed by the minor when converting the account.  When this happens, the minor must present proof of their date of birth (e.g. driver's license, birth certificate or passport).  The custodian's signature is required when the account is converted or closed when the minor reaches age 18.

Benefits of a State issued ID card for minors

Some state Departments of Motor Vehicles (DMV or DOT) issue identification cards.  In California, an ID can be issued to a minor and is valid for six years.  Star One Credit Union recognizes these ID cards as a valid form of identification.  To apply for a California ID card, you will need to do the following:

  • Visit a DMV office
  • Complete an application
  • Provide a thumb print
  • Have your picture taken
  • Provide the minor's social security number.  It will be verified with the Social Security Administration while you are in the office
  • Verify the minor birth date and legal presence
  • Pay an application fee

ID cards are available to most who do not have a driver's license.

Trust Accounts

A trust is an estate planning tool used primarily to avoid the delays and costs of the probate process. A member will generally work with a professional estate planner or attorney, independent of the Credit Union, to create a trust agreement. Upon creating the agreement, the member transfers title to his Credit Union assets to be held in trust. Complete our Membership Application to get started.

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